Ibex 35 opened this Thursday with a retreat of around 0.7 percent, slipping below the 9,200-point threshold and landing at 9,147.81. Investors faced a backdrop of global tensions driven by the Israel-Hamas conflict and ongoing ripple effects on business sentiment in Spain, shaping a cautious mood as trading began. The session framed itself as a test of resilience for Madrid’s main index amid mixed signals from overseas markets and domestic economic headlines.
Bankinter had already closed before the Madrid market opened, marking a notable note in the daily flow of results. For the first nine months of 2023, the bank reported a net attributable profit of 685 million euros, up 59 percent from the same period a year earlier. This robust performance provided some buoyancy to the financial sector within the Ibex 35, even as the broader market faced headwinds from geopolitical and macroeconomic uncertainty.
Today’s calendar featured several important data points and corporate updates that traders were watching closely. Spain was due to publish August trade figures, a gauge of export activity and import demand that can illuminate the trajectory of the economy as it recovers from the pandemic era. In the United States, initial claims for unemployment benefits were anticipated, offering a fresh snapshot of the labor market health amid ongoing policy debates.
In addition to macro data, investors were paying attention to corporate earnings, including results from AT&T and LOréal, which could influence sentiment in international equity markets and spill over into Europe. As the session progressed, attention subtly shifted toward central bank commentary, with Powell slated to speak after the Madrid close. Market participants were curious to glean any clues about the path of monetary policy and potential shifts in rate expectations.
Among the top movers within the Ibex 35 in the early trading, Logista stood out with a gain of about 0.65 percent, followed by Colonial at roughly 0.48 percent, Acciona around 0.42 percent, and Redeia up close to 0.34 percent. On the downside, IAG led the declines at around 1 percent, with Fluidra also showing weakness and Griffols posting a modest retreat. These oscillations highlighted a market sentiment that favored defensive exposure and selective growth plays as traders weighed the risk-reward skew of individual names.
Across Europe, the morning mood was mixed with major exchanges opening with a negative bias. Paris slipped about 0.71 percent, London fell near 0.68 percent, Milan around 0.51 percent, and Frankfurt roughly 0.39 percent lower. The broader risk environment underscored the sensitivity of equity markets to geopolitical headlines, energy prices, and the trajectory of inflation in key economies.
Commodity markets displayed a similar pattern. The Brent crude benchmark, the European reference price, traded above 90 dollars per barrel at the start, reflecting ongoing supply considerations and geopolitical risk premia. In the United States, oil prices also moved lower, with Texas intermediate WTI hovering around 86.97 dollars as concerns over Middle East tensions, Iran activity, and supply resilience influenced traders’ risk calculations.
From a currency perspective, the euro traded near 1.0545 against the greenback, reflecting ongoing divergences in monetary policy expectations between the European Central Bank and the Federal Reserve. Spain’s risk premium hovered around the mid-110 basis points area, while the yield on the 10-year Spanish government bond stood near 4.08 percent, consistent with a backdrop of heightened uncertainty and a cautious approach to positioning in fixed income markets.