The Ibex 35 opened higher on Thursday, gaining 0.75% to begin a session that positioned it back in the runner-up spot within the selective index. At 9:01 the index stood at 8,424 points as investors watched Wall Street react after Federal Reserve Chair Jerome Powell signaled a potential pause in the aggressive rate-hike trajectory that had characterized much of the year. Investors in North America and Europe absorbed Powell’s comments, which suggested the Fed could ease the pace of monetary tightening in December, paving the way for a smaller increase or a hold on rates at the upcoming decision meeting.
Powell’s remarks at a Washington event underscored a shift in tone from the central bank, indicating that the monetary authority may step off the accelerator even as it remains committed to curbing inflation. The message is being read as a cautious path forward: more restraint than acceleration, with a focus on data dependence as the Fed meets to reassess policy next month.
The Federal Reserve is scheduled to conduct its final meeting of the year between December 13 and 14. While the plan to raise policy rates was still on the table for some economists, the emphasis has moved toward gauging the size of any potential move. Market participants in Spain and across Europe are watching closely, as expectations around the magnitude of the increment have shifted in light of Powell’s guidance, which may influence global funding costs and risk sentiment for North American assets and international markets alike.
As the November data showed a 5% gain in some indices, Madrid began the trading session above the 8,400 mark, buoyed by a broad rally. The Dow Jones rose around 2.18%, the S&P 500 advanced about 3.09%, and the Nasdaq climbed roughly 4.41%, signaling renewed risk appetite among U.S. equity investors and adding momentum to European markets that opened higher this Thursday.
Early in the session, a majority of listed equities traded in positive territory. Grifols led the gains with a rise near 2.68%, followed by Red Eléctrica at about 2.08%, Indra around 0.68%, Telefónica soaring approximately 11%, Amadeus up nearly 0.98%, ArcelorMittal near 0.95%, and BBVA adding about 0.66%. On the downside, Caixabank slipped around 1.04%, Bankinter roughly 0.51%, and Sabadell hovered around a 0.21% decline. This mixed performance illustrates the ongoing rotation across sectors as investors weigh financials, energy, and technology exposures.
Beyond Spain, broader European indices also traded higher in early action. Frankfurt registered roughly a 1% uptick, Paris around 0.6%, and London about 0.3%, reflecting a generally constructive regional mood despite ongoing commentary on central bank policy and inflation dynamics. In commodity markets, Brent crude—widely used as a benchmark in Europe—softened by about 0.18%, trading near $86 per barrel, while U.S. WTI fell around 0.16% to roughly $80. These movements underscore how energy prices remain a key driver of market sentiment and inflation expectations for North American and European investors alike.
On the foreign exchange front, the euro held a bid near $1.04 against the dollar, trading around 1.0423. The Spanish risk premium hovered close to 99 basis points, and the yield on the benchmark ten-year government bond stood near 2.87%. For Canadian and American traders, these currency and sovereign yield signals contribute to the broader picture of global capital flows, financing costs, and relative value opportunities in fixed income and equity markets.