Ibex 35 began trading on Tuesday with a modest 0.49% retreat, dipping beneath the 9,000 level to settle at 8,869.7. The session painted a portrait of ongoing caution as investors weighed corporate earnings alongside broader geopolitical tensions surrounding Israel and Hamas. Such uncertainties kept market participants wary as the day unfolded, shaping a hesitant start to trade.
Before the bell, BBVA reported to the National Securities Market Commission that the first nine months of 2023 delivered a net profit of 5.961 billion euros, up 24.3% from the same period a year earlier. The figure underscored BBVA’s ability to sustain strength across its core operations and diverse market segments, even in a challenging environment characterized by macro headwinds and competitive pressures.
Endesa, meanwhile, posted nine-month net earnings of 1.059 billion euros, down 35.9% from 1.651 billion euros the previous year. The decline was tied to a reduced contribution from extraordinary items, which weighed on overall performance even as demand in its energy portfolio remained steady and resilient amidst shifting regulatory and market dynamics.
Indra also showed solid progress, reporting a net profit of 146 million euros for the first nine months. This marks a 26% rise from 116 million euros in the prior year period, reflecting sustained gains from its technology and defense-related initiatives as the company continues to expand its footprint in high-growth sectors.
In related corporate news, the State Industrial Participation Association, SEPI, told the CNMV that it is weighing the possibility of acquiring shares in Telefónica, signaling potential strategic moves within the telecommunications landscape and sparking investor speculation about future alignment opportunities.
Ahead of the market open, the macro picture highlighted a French economy that expanded by 0.1% in the third quarter, down from 0.6% in the second. The cooling momentum echoed broader European trends and fed into investor focus on growth trajectories, policy responses, and the resilience of regional economies amid ongoing global uncertainties.
During early trading, the strongest movers on the Ibex 35 included Indra, up 1.6%, Banco Sabadell, up 1.01%, and Naturgy, gaining 0.9%. In contrast, BBVA traded down roughly 3.38%, Banco Santander slid 1.82%, and Inditex paused trading briefly due to dividend-related dynamics in the near term. The mixed moves underscored sectoral shifts and the sensitivity of earnings outlooks to evolving market sentiments.
Across Europe, the major stock exchanges opened with a cautious uptick: Paris and Milan up 0.16%, Frankfurt 0.15%, and London 0.03%, signaling guarded optimism as traders awaited further corporate signals, macro data, and ongoing geopolitical developments that could shape risk appetite.
Meanwhile, energy markets showed a firm footing, with Brent crude hovering above 86 dollars per barrel at the open, rising 0.31%. In the United States, WTI crude advanced about 0.38% to 82.62 dollars. The moves reflected persistent concerns about supply disruptions and regional tensions in the Middle East, alongside ongoing questions about global demand amid geopolitical frictions in Iran and broader regional dynamics that influence prices and sentiment.
The euro traded near 1.0623 dollars, while Spain continued to manage its risk profile with a risk premium around 106.4 basis points and the 10-year government bond yield near 3.864%. These indicators offered a snapshot of the macro backdrop facing European markets, highlighting borrowing costs and policy expectations as investors gauge resilience and fiscal strategies across the region.