The Ibex 35 began Thursday slightly higher, rising close to 0.4 percent and reaching 9,954.7 points. This session unfolds against the backdrop of Spain releasing the definitive January inflation data.
At the opening, it was reported that the Consumer Price Index (CPI) increased by 0.1 percent in January compared with December, lifting the annual rate by three tenths to 3.4 percent. The uptick was driven by higher electricity prices.
In related European news, the United Kingdom’s Gross Domestic Product (GDP) contracted by 0.3 percent in the last quarter of 2023, following a 0.1 percent decline in the prior three months. This marks the UK as entering technical recession after two consecutive quarterly contractions, making it the second-largest economy in Europe to do so this cycle.
Markets will be listening for remarks from the president of the European Central Bank, Christine Lagarde, in Brussels, along with the release of corporate earnings figures that could steer sentiment through the session.
Meanwhile, traders note that Chinese markets will be closed for the entire week to observe the Chinese New Year, so no domestic reference points are expected from mainland exchanges.
In the early trading hours, the largest declines within the Ibex 35 were recorded by Repsol, down 0.83 percent, followed by Rovi, down 0.36 percent, and Indra, down 0.19 percent. On the positive side, gains were led by Mapfre, up 1.93 percent, Sacyr, up 1.88 percent, and Amadeus, up 1.48 percent.
At the same time, major European markets opened higher: Paris up 0.65 percent, Milan up 0.62 percent, Frankfurt up 0.51 percent, and London up 0.49 percent.
As trading began, Brent crude, the European benchmark, traded around 81.10 dollars a barrel, down 0.61 percent, while U.S. West Texas Intermediate (WTI) slipped about 0.69 percent to roughly 76.11 dollars per barrel.
On the currency front, the euro traded at about 1.0732 against the dollar. In the debt market, the yield on a 10-year Spanish or European benchmark rose to around 3.218 percent, reflecting a cautious tone among investors facing a calendar heavy with data and central bank commentary.
Overall, investors remain focused on inflation indicators and central bank signals as they assess the risk appetite across equities and fixed income. The absence of immediate cues from Chinese markets due to the New Year holiday adds a layer of caution, with domestic data and Europe-wide earnings guidance likely to drive price action in the near term.