The session kicked off with a cautious tone as the Ibex 35 approached the round number of 9,500, slipping briefly to around 9,491 amid a day framed by political uncertainty and a string of global macro indicators. Traders faced a mix of signals, including the market’s reaction to the unfolding election results, ongoing conflict in the Middle East, and the release of key corporate earnings alongside inflation data from major economies. Market participants weighed the potential implications for risk appetite and sector leadership as the day progressed.
Early in the day, investors learned that the Consumer Price Index rose by 0.3 percent in October compared with September. The data supported the view that the annual policy stance would remain unchanged at a 3.5 percent rate, an outcome that markets had anticipated. The rise in electricity and gas costs was offset by declines in fuel prices, and the increase in food prices carried less momentum than in the prior year, tempering inflation pressures overall. This combination suggested that price pressures might be cooling, even as energy components remained a source of volatility for markets both in Europe and beyond.
In Spain, the public treasury prepared for a sizeable auction on Tuesday, with expectations placing a volume between 1.5 billion and 2.5 billion euros. The auction would feature notes with maturities of three and nine months, a routine event that offers a glimpse into the country’s debt management strategy and investor demand as liquidity conditions shuffled in response to nearby political and economic headlines.
On the economic calendar, several important releases loomed on the horizon. In Germany, November consumer confidence data from ZEW were set to be published, while in the United States October inflation figures were due, followed by updates on GDP and regional employment across the euro area. These indicators would help frame broader expectations for growth, inflation, and the trajectory of monetary policy in key economies across North America and Europe.
During the market’s early trading, the top performers within the Ibex 35 included Solaria, which climbed about 1.87 percent, Sacyr up roughly 1.54 percent, and Grifols gaining around 1.37 percent. By contrast, some laggards appeared on the downside, with Unicaja Banco down about 0.49 percent, IAG slipping around 0.14 percent, and Banco Santander easing by roughly 0.12 percent. The day thus opened with a clear sense of dispersion, as investors rotated among areas of potential upside and hedges against downside risk amid a still-fragile risk climate.
Across European equities, the morning session offered a mixed landscape: Milan edged higher by about 0.45 percent, Paris added around 0.17 percent, while Frankfurt and London traded lower by roughly 0.15 percent and 0.12 percent, respectively. The performance in these regional markets reflected a combination of domestic data releases, geopolitical tensions, and ongoing negotiations around energy supplies and macroeconomic policy. Traders remained mindful of the balance between inflation dynamics and growth signals as the day unfolded.
In commodity markets, Brent crude traded in a tight corridor as the oil complex absorbed macro headlines and supply considerations. The U.S. dollar, which serves as a benchmark for the European trading day, moved higher by about 0.21 percent, topping the $82 level. In contrast, the energy-related currency and regional indicators showed pockets of resilience as traders weighed broader geopolitical risks and potential shifts in supply from major producers. In addition to Iran’s situation, concerns persisted regarding the conflict in Ukraine and disruptions to flows from Russia and Saudi Arabia, underpinning ongoing energy-market volatility.
On the currency front, the euro-dollar exchange rate hovered near the 1.0700 mark, reflecting ongoing divergence in monetary policy expectations and growth outlooks between the European Central Bank and other major central banks. Spain’s sovereign risk premium remained elevated, with the 10-year yield showing a yield around 3.758 percent, while the general macro backdrop suggested continued sensitivity to inflation metrics and political developments as investors reposition their portfolios.
Overall, the market environment remained nuanced and data-driven, with volatility shaped by a blend of domestic indicators, international tensions, and policy expectations. Traders sought clarity on the path ahead for inflation and growth and looked for confirmation in upcoming reports and earnings results, a process that would likely influence sector leadership, cross-asset correlations, and trading strategies in the days ahead. As the session progressed, investors aimed to balance risk and opportunity in a landscape where every datapoint could tilt sentiment one way or another, shaping momentum across equities, currencies, and commodities alike.