The IBEX 35 opened the session lower, slipping 0.19 percent on Tuesday as traders watched the index hover near the 7,950 mark at 9:01 am. The day arrives with investors awaiting the European Central Bank meeting and a wave of corporate earnings that are set to shape market sentiment as euro area inflation data is released.
Investors expect the ECB Governing Council to raise rates for the first time in this cycle, a move that would cap a period of tighter policy across the euro zone. The decision comes amid a broad backdrop of a weaker euro versus the dollar and a persistent inflation challenge that has kept markets skittish. In parallel, political developments in Italy add another layer of uncertainty to the region’s already fragile economic outlook.
Following a 0.2 percent gain on Monday, Madrid equities opened the new session trading near the psychological milestone of 8,000 points, a level that many traders view as a psychological barrier that could influence short term momentum and sentiment across the market.
In the early moves Tuesday, the biggest declines were registered by IAG, down 1.42 percent, followed by Fluidra and Grifols, both down around 1.0 to 1.4 percent. Solaria and Acerinox also retreated, while Meliá Hotels slid about 0.6 percent. PharmaMar bucked the trend with a healthy gain of nearly 1 percent, and Caixabank, Colonial, and Sacyr posted modest advances of roughly 0.3 to 0.2 percent.
Across the broader European market, the session opened with a softer tone. Frankfurt dipped around 0.57 percent, Paris fell about 0.63 percent, and London edged lower by roughly 0.36 percent as trading began.
Commodity markets offered a mixed backdrop as well. Brent crude, still the European benchmark, inched up about 0.07 percent, trading near $106 per barrel. In U.S. markets, the benchmark West Texas Intermediate rose around 0.2 percent, hovering near $99 a barrel, supporting energy shares in several regional indices.
Meanwhile, the euro hovered around the $1.0180 level against the dollar as traders weighed the potential impact of policy tightening and currency moves on European growth prospects. The region’s risk premium remained elevated, with the Spanish 10-year government bond yield around 2.41 percent and the euro area’s credit spreads keeping pressure on borrowing costs for sovereigns and corporations alike.