Ibex 35 kicked off the trading week on Monday in early April with modest movement, slipping around 0.2% before the day gathered momentum. Following OPEC+’s surprise decision to trim production again, the index climbed to 9,212 points as oil prices surged, signaling a cautious shift in risk appetite among investors who weigh energy supply signals alongside domestic indicators. The morning action reflected a broader pattern where crude markets were determining the tone for European equities, with energy names often leading or lagging based on how the oil complex re-prices in response to the OPEC+ move and the evolving demand backdrop.
Market watchers who track crude dynamics and the energy complex were quick to note that commodity flows can tilt sentiment across European bourses. At the same time, PMIs from manufacturers across various European economies and the Eurozone provided a fresh gauge of factory conditions, order books, and output expectations, contributing to a narrative of slowing but still expanding activity in some regions. These data points often interact with central bank expectations and currency moves, shaping intraday volatility and the longer-term outlook for equities in Spain and beyond.
In the opening phases of the session, several Ibex 35 constituents showed strength, with Repsol rising about 2.7%, CaixaBank up roughly 1.3%, Merlin Properties yielding a modest gain near 1.0%, Enagás advancing around 0.9%, and Unicaja Banco contributing about 0.5%. The dispersion highlighted sector-specific drivers, where energy exposure, financials, and utility plays contributed to a mixed texture as investors priced in both rising oil momentum and the ongoing regional macro backdrop.
Conversely, the day’s notable declines were led by BBVA, which moved lower by nearly 3.9%, followed by ArcelorMittal around 2%, IAG just under 2%, Aena around 1%, and Fluidra retreating close to 1%. The downshifts underscored how bank equities and industrials with global exposure can experience amplified sensitivity to global growth narratives, currency shifts, and geopolitical risk premiums. Traders monitored whether these pullbacks would be countered by sector rotation or if new catalysts would emerge to stabilize sentiment.
Across Europe, major stock markets opened with a mix of outcomes: Frankfurt flirted with a slight loss near 0.1%, Milan and Paris registered around a 0.2% recalibration, while London advanced about 0.5%, illustrating a broad spectrum of early responses as investors reacted to commodity signals and regional earnings expectations. The interplay between energy prices and corporate earnings continued to be a central theme for the day, with traders evaluating how the OPEC+ decision might ripple through European energy-sensitive sectors and balance sheets.
Following OPEC+’s production cut, Brent crude—the benchmark for much of Europe—spiked about 5.3% to around $84.11 per barrel, while U.S. benchmark West Texas Intermediate rose roughly 5.1% to approximately $79.60. This move underscored the market’s sensitivity to supply constraints and the potential for tighter crude markets to influence inflation dynamics, which in turn can affect both equity valuations and monetary policy expectations across North America and Europe.
In the foreign exchange market, the euro held steady near 1.0816 versus the dollar, with traders weighing the currency’s reaction to regional growth signals and inflation trajectories. The yield on the 10-year sovereign bond declined to about 3.336%, reflecting a shifting risk posture as investors skimmed the horizon for the path of interest rates and the potential impact on cross-border financing costs. These currency and bond moves contribute to a complex mosaic where equities, commodities, and fixed income interact in real time, shaping day-to-day performance and longer-term investment strategies for Canadian and U.S. investors alike. [Source: Reuters]