The Ibex 35 opened trading on Tuesday with a modest 0.2 percent decline, nudging the index into second place among major European markets as it hovered around the 8,675 level at 9:01 am. The session began with attention focused on actions and signals from the Federal Reserve chair Jerome Powell, whose remarks are closely watched for potential shifts in policy and market expectations.
After slipping 0.07 percent in the previous session, the Madrid benchmark attempted to steady and test the 8,700 mark again. Investors remained cautious ahead of a week loaded with critical economic data, including fresh US inflation readings and corporate earnings releases scheduled over the coming days, especially tomorrow and Thursday. Traders weighed the potential impact of these numbers on the pace of rate adjustments and overall risk sentiment.
At the start of the session the largest declines were recorded in several heavyweight names, with ArcelorMittal slipping about 1.31 percent, Colonial down roughly 1.3 percent, Acerinox around 1.22 percent, Merlin Properties near 1.09 percent, and Grifols shedding about 0.7 percent. In contrast, defensive and energy plays showed relative resilience, with Endesa up about 0.76 percent, Naturgy Energy advancing roughly 0.64 percent, Red Eléctrica gaining around 0.46 percent, and Iberdrola adding approximately 0.28 percent as they benefited from steadier electricity demand and policy signals.
Across the rest of Europe the mood was mixed but mostly constructive, with Frankfurt and London showing gains near 0.3 percent while Paris hovered slightly down around 0.5 percent. These moves reflected a broader risk-on tone in early trade as investors digested macro developments and prepared for the US data flow that would shape sentiment through the week.
Meanwhile, crude oil prices softened in early trading, with Brent crude slipping about 0.84 percent toward the mid 70s per barrel, around 78 dollars, and West Texas Intermediate dipping roughly 0.64 percent to the low 70s per barrel. The broader commodity complex remained sensitive to global demand expectations and potential supply adjustments discussed by major producers, which in turn influenced equity risk premia and currency flows.
In the currency arena the euro held near parity with the US dollar, trading around 1.07 to the dollar as markets priced in evolving inflation trajectories and the possibility of further monetary policy divergence between the two economies. The Spanish risk premium hovered around 105 basis points, while the yield on the benchmark ten-year Spanish bond stood near 3.31 percent, signaling a measured appetite for eurozone government debt amid ongoing uncertainty about inflation and growth dynamics.
Overall, the market backdrop combined a cautious start for Iberian equities with a tentative sense of relief across European indices as traders prepared for the US inflation print and corporate earnings cycle. Investors continued to dissect the interplay between monetary policy expectations, commodity price signals, and currency movements, looking for clearer guidance on the pace of rate normalization and the resilience of domestic and regional economies in the face of global headwinds. Market commentators note that the near-term direction may hinge on the strength of incoming data and the ability of major companies to meet or surpass consensus estimates, which could recalibrate bets on equities, fixed income, and foreign exchange in the days ahead. Financial dashboards and market commentaries consistently emphasize the importance of liquidity, risk management, and the sustained grip of inflation on policy posture, even as pockets of opportunity emerge in cyclical sectors and defensives alike. This dynamic environment encourages traders to blend technical signals with macro narratives, aiming to capture short-term movements while maintaining a longer-term perspective on solvency, growth, and capital allocation. At press time, analysts cited by market aggregators highlighted the ongoing tension between growth signals and price stability, suggesting that the coming data flow could be decisive for the trajectory of global markets in the near term.