The Ibex 35 began trading on Friday with a 0.72% retreat, dipping to 7,585 points as of 9:01 in the morning. Traders watched the session amid a backdrop that includes the European Union leaders’ summit and a broader environment shaped by persistent inflation and ongoing energy pressures. Investors in Madrid faced a combination of cautious optimism and renewed concerns as markets tried to price in the latest developments from the political front and the global economy, while the day’s agenda focused on corporate earnings as a key driver of sentiment and expectations for the near term.
Trading activity showed a modest rebound as the index gained 0.8% on the previous session, though it remained below the psychologically important threshold of 7,600. The move came after a day of declines on Wall Street and in a trading week dominated by corporate results rather than macro surprises, with investors parsing earnings reports for hints about demand, margins, and guidance. In this climate, the Madrid stock market attempted to recover some ground but stayed sensitive to external shocks and sector-specific news that can quickly sway the tone of the conversation among traders and fund managers alike.
In the earliest hours of Friday, Spain’s biggest movers displayed mixed fortunes. Inditex led the losses with a drop of 3.61% as investors reacted to results and outlook statements that did not fully meet expectations. Grifols declined 3.28% on concerns about the pace of its business momentum and competition, while Sabadell slipped 1.83%. Bankinter followed with a 1.65% retreat, and Meliá Hotels saw a 1.38% fall amid a cautious travel and leisure sector environment. BBVA traded 1.19% lower, Aena shed 1.19% amid transportation demand concerns, Ferrovial fell 1.15%, and Santander decreased 1.14%. The cluster of declines illustrated how a handful of heavyweight names could determine the broader movement of the index as investors weighed earnings, cost pressures, and competitive dynamics within each sector.
Across Western Europe, other major markets opened softer as well. Frankfurt, Paris, and London all registered declines, with the European bourses collectively trading lower by about 1% on the day, while London’s start carried a more moderate drop of roughly 0.7%. The synchronized move underscored a risk-off mood as investors prepared for the latest earnings snapshots and the ongoing narrative around inflation, energy supply, and policy responses across the continent.
Commodity markets followed a similar thread as oil prices moved lower. Brent crude, the benchmark for European energy dynamics, traded down about 0.41% to around $92 a barrel, reflecting a combination of supply considerations, demand signals, and the evolving geopolitical backdrop. In the United States, West Texas Intermediate slipped by roughly 0.38%, trading near $84 a barrel as traders reassessed growth concerns and the potential impact of energy costs on consumer spending and industrial activity. The corridor of price action in oil contributed to a broader discussion about inflation persistence and investment strategies in energy-related equities.
Meanwhile, foreign exchange and fixed income markets provided further context for the risk environment. The euro traded at approximately $0.9767 against the dollar, signaling ongoing currency dynamics that can influence export competitiveness and import costs for European companies. Spain’s risk premium was estimated at 114 basis points, while the yield on the benchmark 10-year Spanish bond stood at about 3.588%, reflecting investors’ assessment of sovereign risk relative to the region’s growth trajectory and policy outlook. Taken together, these data points capture a market backdrop that remains sensitive to policy messages, corporate results, and the evolving balance between growth and inflation.