Ibex 35 opened this Tuesday with a slight dip of 0.2%, placing the index at 8,069.5 points around 9:01 a.m. in a session that coincides with the start of the United States Federal Reserve meeting, the outcome of which is anticipated to be disclosed tomorrow. The day follows a positive move, as the Madrid benchmark rose by 0.42% yesterday, and today it tests the 8,000-point psychological level as the market looks ahead to key governance updates and policy signals.
The Spanish market is setting up its agenda for the 2023 General Government Budgets, with a plan to approve the non-financial spending limit, commonly referred to as the spending ceiling, during the Council of Ministers meeting later this week. This step is part of a broader effort to align fiscal plans with evolving macroeconomic conditions and market expectations.
In the early hours of Tuesday, the market showed uneven performance among top components and sector leaders. The largest declines came from Inditex, with a drop of 1.24%, IAG down 1.12%, Rovi slipping 0.92%, Sabadell retreating 0.89%, BBVA easing 0.76%, Bankinter around 0.72%, and Santander losing 0.61%. Conversely, the session was supported by gains from Repsol, advancing 1.69%, ArcelorMittal up 1.02%, Grifols rising 0.56%, Iberdrola adding 0.55%, and Acerinox climbing 0.52%, highlighting a mixed leadership that kept the index in a cautious mode.
Across Europe, the mood was cautious as investors absorbed regional developments. London equities managed a modest gain of about 0.5%, while Frankfurt and Paris posted slight declines near 0.1%, illustrating a broadly mixed European equity landscape as traders weigh domestic data and international policy cues.
Commodity markets mirrored the risk-off tone in some regions, with Brent crude, a key reference for European energy markets, hovering around the 101-dollar mark. The barrel’s movement reflected persistent supply and demand dynamics as global markets digest policy signals from major economies while considering inflation trajectories and growth forecasts. In the energy complex, U.S. crude benchmarks showed a modest ascent, with WTI around the mid-90s to high-90s per barrel, supported by expectations of continued demand in the near term and ongoing production adjustments.
On the currency front, the euro traded around 1.02 against the U.S. dollar, reflecting a balance between divergent monetary policy expectations and regional growth signals. Market participants continued to monitor inflation data, central bank communications, and geopolitical developments that influence currency volatility and capital flows between major economies and the euro area.
Overall, the session captures a cautious mood as investors prepare for the Fed meeting’s conclusions while monitoring Spain’s fiscal plans and the broader European macro backdrop. The balance between modest gains in some blue chips and declines in others indicates a market awaiting clearer directional cues from policy decisions, economic data, and currency dynamics. Observers note that volatility may persist in the near term as markets price in the potential implications of central bank communications and fiscal policy developments across key economies.
Cited: Market roundups and data reported by Reuters and other financial services outlets, reflecting standard coverage of European equities, oil, and currency markets during the trading day.