Ibex 35 Eyes Slight Rise as Spain Publishes PCE Reading and Inflation Data
The Ibex 35 opened higher on Wednesday, edging up 0.27 percent to 11,020.9 points after a session shaped by Spain’s advance release of the Consumer Price Index, or CPI. Investors kept a close watch on how inflation data could guide monetary policy as the day began.
The Madrid benchmark gathered momentum from the outset, climbing to levels not seen since mid-2017 after quickly breaking through the 11,000 mark in early trading, following a close of 10,991.5 points on Tuesday, up 0.08 percent. The early strength underscored market optimism about the domestic economy and the potential implications of the inflation metrics released today.
At the start of the session, official figures showed that the CPI rose 0.8 percent in March from February and lifted the annual inflation rate by four tenths to 3.2 percent, with electricity and fuel costs driving the uptick. Food prices, by contrast, rose at a slower pace in March than in March 2023, according to data published by the National Institute of Statistics, INE. These numbers come amid a broader European inflation narrative that will influence policy expectations in the coming months.
In corporate news, Vidrala announced that Raúl Gómez, previously the firm’s chief financial officer, has been appointed chief executive officer as part of a planned succession. The company also indicated that it would vote on an extraordinary dividend of up to 129 million euros, subject to the actual sale of its Italian subsidiary in the near term. This move is aimed at delivering shareholder value while maintaining strategic flexibility through the planned sale process.
In the earliest trades of the session, the top performers within the Ibex 35 included IAG, up about 1.01 percent, followed by Inditex and Grifols, each higher by around 0.7 percent, and Rovi, gaining roughly 0.56 percent. On the other hand, the list of laggards featured BBVA, down 0.28 percent, Repsol down 0.26 percent, and Solaria slipping about 0.16 percent. The market’s breadth reflected a cautious but constructive mood as investors priced in corporate dynamics and macro signals.
Across Europe, the major stock indices opened with declines. London shed about 0.11 percent, Paris slipped 0.06 percent, Milan fell 0.05 percent, and Frankfurt moved down by around 0.02 percent, suggesting a cautious stance among investors at the start of the session as traders digested the inflation outlook and energy costs.
Oil prices gave a parallel read on risk sentiment. At the session’s open, Brent crude, the benchmark for Europe, traded roughly 0.95 percent lower at around 84.82 dollars per barrel, while U.S. West Texas Intermediate hovered near 80.84 dollars, down about 0.96 percent. The price moves reflected ongoing supply considerations and demand expectations driving volatility in energy markets.
Meanwhile, currency markets showed the euro gaining momentum against the U.S. dollar, with the exchange rate around 1.0829 dollars per euro. In the debt market, Spain’s 10-year government bond yield rose, adding to the rate backdrop that investors weigh as they calibrate risk and return in fixed income portfolios. These macro signals collectively shape trading choices across equities, currencies, and bonds in the region and beyond.
Overall, today’s trading narrative pointed to a cautious but positive sentiment for equity markets, supported by domestic inflation data, corporate leadership changes that may unlock strategic value, and a sense that monetary policy paths remain responsive to evolving price dynamics. Market participants remain focused on how inflation trajectories and energy costs will influence central bank decisions in the near term, while also watching corporate news for clues about earnings resilience and capital distribution. The day’s developments will likely influence short-term moves as traders reassess risk, expectations, and opportunities across Europe and the broader global market landscape.