The Ibex 35 began trading higher on Tuesday, posting a gain of about 0.84% and climbing to a level that highlights its current momentum among European stock benchmarks. The index touched 8,507.15 points as investors anticipated the upcoming decisions from major central banks. With market participants bracing for the United States Federal Reserve to announce its policy stance on interest rates, the session was characterized by cautious optimism. The benchmark’s move comes in a backdrop of macroeconomic uncertainty and ongoing global developments, making the day’s trajectory especially sensitive to new information from the Fed and other major economies.
Following a sharper retreat on Monday, when the Madrid index slipped by around 1.69%, the regional market recovered at the opening with prices hovering above the psychological 8,500-point threshold. This recovery occurred amid a mix of corporate earnings releases and geopolitical developments, notably the continued spillover effects from the conflict in Ukraine. Analysts noted that earnings reports from several listed companies could provide directional clues for investors as they interpret the health of the domestic economy against a backdrop of global volatility.
In the early portion of Tuesday’s session, a broad majority of the constituent stocks traded in positive territory. Among the notable movers, IAG led the gains with a rise close to 2%, followed by Amadeus and Rovi, each posting gains near 1.8% and 1.77% respectively. ArcelorMittal and Santander also contributed solidly to the upside, advancing around 1.6% to 1.57%. Fluidra showed a notable upward move as well, underscoring a positive dealer tone across various sectors as investors weighed cyclicals against defensives in this environment.
The broader European landscape mirrored the upbeat tone seen in Madrid. Frankfurt and Paris opened with roughly 0.5% gains, while London also registered a similar early advance. This coordinated regional outperformance reflected a combination of improving risk sentiment and reassessment of European growth prospects amid ongoing energy market dynamics and inflation dynamics across the continent.
Commodity markets showed Brent crude trimming losses, sliding about 0.76% to around $106 per barrel, while the US crude benchmark WTI softened by roughly 0.72% to near $104. The moves in oil prices added another layer of focus for traders, as energy pricing remains a key driver of inflation expectations and, by extension, central bank policy outlooks across the Atlantic region.
Meanwhile, the euro remained near the 1.0055 level against the U.S. dollar, reflecting a quiet moment in currency markets that often accompanies major macro news. Currency moves can influence export-oriented sectors and the strategic positioning of multinational corporations listed on the Iberian index, making the foreign exchange backdrop a relevant factor for daily trading decisions. Market participants continued to monitor how currency fluctuations could interact with corporate earnings and commodity prices as the session progressed.