Ibex 35 begins the session with a slight dip as markets await key results and global tensions loom
The Ibex 35 opened the trading day with a modest decline of 0.23%, allowing the benchmark index to hover around 9,200 points before touching 9,276.99 as the session progressed. The day carries additional weight due to ongoing conflicts in the Middle East, notably the confrontation between Israel and Hamas, which adds a layer of risk for investors and could influence how euro area markets perform as they chart their course for the week ahead.
Market participants are exercising caution ahead of a busy week that features the release of business results from Spanish banks and the final September inflation figures for the euro area. Investors will be parsing Bankinter’s results as a gauge of domestic financial health, while economists will scrutinize the eurozone inflation data to assess the pace of price normalization across the bloc.
On the macro front, attention turns to the latest official estimate of China’s third-quarter GDP. The data show a 1.3% quarter-on-quarter expansion, improving from the prior reading and outpacing some expectations. The prior quarter had reported 0.5% growth, with the revised data also adjusting away from an earlier 0.8% figure. The growth trend from China remains a crucial driver for global demand and commodity prices, influencing equities and currency markets across Europe and beyond.
Among the Ibex 35 constituents, the leaders in early trading included Repsol, which rose about 1.34%, CaixaBank up roughly 0.66%, Logista advancing around 0.47%, and BBVA climbing about 0.34%. On the other side, some stocks moved lower, with IAG, Ferrovial, and Solaria recording declines of about 1.36%, 0.97%, and 0.95% respectively, painting a mixed picture for the index as the session unfolds.
Across Europe, major stock markets opened with varied trajectories. Paris and Frankfurt posted small losses of 0.11% and 0.09% respectively, reflecting cautious sentiment in the region. In contrast, Milan managed a small gain of 0.17% and London edged up by 0.02%, underscoring the uneven mood as investors weigh domestic cues against global geopolitics and rate expectations.
Commodities also moved on inflation and geopolitical concerns. At the market’s opening, Brent crude, the European benchmark, traded above 91 dollars per barrel, marking a robust start with a gain of about 1.62%. In contrast, U.S. oil benchmark WTI rose to around 87.03 dollars, reflecting a 1.86% uptick. The broader backdrop includes heightened tensions in the Middle East after the conflict between Hamas and Israel, alongside geopolitical risk factors stemming from Iran’s position, the conflict in Ukraine, and the potential impact of supply disruptions from major producers including Russia and Saudi Arabia.
Turning to currencies, the euro traded near 1.0578 against the U.S. dollar, signaling ongoing exchange-rate dynamics as markets digest economic data and policy signals. Spain’s sovereign risk premium hovered around 111.4 basis points, while the Spanish 10-year government bond yielded approximately 4.017%, reflecting investors’ demand for euro area debt securities amid a shifting global rate environment.