Ibex 35 began the session with a 0.64% decline as banks weighed on the index, a pressure that later eased slightly when banking shares moved above the morning lows. Santander led the losses, dropping close to 3% in the early hours after it released its first-quarter results for the year.
The initial drop pushed the selective index below last session’s close, with Madrid’s market touching the 9,400 point level before stabilizing. At the open, the Ibex traded around the 9,346 point mark as traders awaited more company reports that could steer the day’s momentum.
Some major earnings were already on the agenda before the bell. Under the leadership of Ana Botín, Santander reported a net attributable profit of 2,571 million euros, up 1.1% year over year for the first quarter. If the provisional tax impact is considered, Santander’s net result could rise to about 2,795 million euros, reflecting roughly a 10% improvement.
Enagás also published quarterly figures, showing a net profit of 54.6 million euros, down 21.2% from 69.3 million euros in the first quarter of 2022. The decline was linked to lower regulated revenue under the SNIP framework, a consequence of adjustments in the regulatory regime. The period under review coincides with the 2021-2026 framework monitored by the National Markets and Competition Commission.
In related news, Enagás and Elecnor confirmed an earlier Tuesday that their joint sale of gas infrastructure assets is progressing toward completion. The assets known as the Morelos gas pipeline and related operations are being reorganized into a fund managed by Macquarie Asset Management, part of the Macquarie Group, with a total value around 190 million dollars, about 173 million euros.
Beyond Spain, investors will be watching a handful of earnings reports from major global players on Tuesday, including Microsoft, PepsiCo, General Electric, Anglo American and McDonald’s, among others. Market attention also turns to macro data such as Portugal’s first-quarter GDP and U.S. housing data, including new home sales and building permits.
Markets also await insights from central banks with upcoming meetings and a webcast featuring Andrea Enria, chair of the European Central Bank’s Supervisory Board.
Speculation around potential ECB policy moves continued late in the session, as ECB Executive Committee member Isabel Schnabel suggested that a 50-basis-point rate hike could still be on the table in May if incoming data support such a move. Schnabel emphasized that the final decision will depend on the evolving information received by the institution.
Banking sector weighs on Ibex at open
The day opened with notable declines in several banking names. Santander fell 2.96%, followed by Sabadell with a 2.1% drop, Unicaja shedding about 2.07%, BBVA down 2.04%, and CaixaBank retreating around 1.69%.
On a brighter note, a few stocks gained traction. Returners included Repsol and Cellnex, each rising about 0.18% in early trading, providing a modest counterbalance to the broader selling pressure.
Across European markets, the tone was soft at the open. Paris and Milan opened down around 0.6%, London slipped about 0.4%, and Frankfurt ticked lower by roughly 0.1%.
Commodity markets showed oil steadying. Brent crude traded near 82.57 dollars per barrel, while U.S. WTI hovered around 78.78 dollars.
In the foreign exchange arena, the euro remained around 1.1042 against the dollar. In the debt market, the yield on Spain’s 10-year government bond eased to about 3.50%, reflecting cautious sentiment as traders digest corporate earnings and policy signals.