On Friday, the market opened with a touch of volatility as index futures and options began to expire in both Europe and the United States, a yearly ritual often referred to as the four witching hours. The session kicked off amid a 0.23% uptick, nudging the selector toward 10,194 points and signaling the arrival of renewed trading activity at the end of the week.
Investors were watching a week already packed with important events, including the meetings of the European Central Bank and the US Federal Reserve. The expiration of derivatives in a week of heightened policy focus added to the sense of caution and potential for rapid moves as market participants adjust positions ahead of central bank communications.
There was particular attention on the latest European Union leaders summit edition, with traders parsing the implications for regional economic policy and growth outlooks. In the macro landscape, a wave of composite PMIs covering manufacturing and services across major economies was anticipated, with France, Germany, the United Kingdom, the Eurozone, and the United States all set to publish readings on Friday. These indicators were expected to provide a clearer view of demand, supply chains, and business sentiment as the quarter progresses.
The early price action showed mixed performance within the constituent stocks. Solaria led the declines at the session’s outset, down 0.66%, followed by Logista at 0.50%, Cellnex at 0.33%, Redeia at 0.23%, and Colonial smalling a 0.08% dip. Conversely, the day’s gains were led by IAG at 0.73%, Repsol at 0.71%, Inditex at 0.70%, and Acerinox at 0.63%, reflecting divergent stock-specific dynamics amid evolving energy, transport, and consumer themes.
Europe’s major bourses opened with a positive bias. Frankfurt and Milan rose by about 0.44%, Paris gained 0.43%, and London edged higher by 0.22%. These openings suggested a cautious but constructive mood as investors weighed policy signals against corporate earnings and global economic data.
At the time of the market open, Brent crude traded with a firmer tone, marking a notable price level that influenced energy stocks and broader market sentiment. The dollar, used as the benchmark for the region, rose 0.30% to around 76.84, while a separate measure, often tracked prices in the domestic market, advanced by about 0.28% to reach 71.78 in the relevant currency pair. In the foreign exchange arena, the euro stood near a 1.0990 rate against the dollar, signaling continued currency volatility amid evolving policy expectations. The Spanish risk premium hovered around 97 basis points, and the yield on the benchmark 10-year government bond rested near 3.099%, reflecting a mix of inflation expectations and growth concerns affecting fixed income markets as the week winds down.