The market started the week on a cautious note this Tuesday as stock indices edged higher, with the Ibex 35 climbing gently and hitting a level just over 9,300 points. Traders were watching the traditional Central Banking Forum that ECB president Christine Lagarde would inaugurate in Sintra, Portugal, a gathering expected to set the tone for policy discussions and market expectations in the near term.
Initial trading showed blue chips leading the advance. CaixaBank led gains among major banks, followed by ArcelorMittal, Merlin Properties and Colonial, each contributing to a broad early uptick. At the same time, some heavyweight financial names showed a softer tone. BBVA, Aena, and Ferrovial moved a touch lower in the early minutes of the session, reflecting a mix of sector-specific factors and the broader risk sentiment guiding traders for the day.
Across Europe, equities were broadly positive as the morning progressed. The main markets opened higher, with Milan, Paris, London, and Frankfurt posting gains. These early moves suggested a tone of cautious optimism as investors weighed corporate results, geopolitical headlines, and central bank signals that could influence future monetary policy paths.
In the commodities arena, the price of Brent crude rose, with the front-month contract trading near the mid-$70s per barrel range. A similar trend was visible in U.S. crude, with West Texas Intermediate maintaining a modest advance. The gains in crude prices reflected a mix of ongoing supply considerations and growing expectations about demand in different regions as the calendar moves further into the year.
On the debt side, the yield on the Spanish 10-year government bond hovered around the 3.3% area, a level that mirrors investor expectations about fiscal discipline and economic growth prospects. The market environment also showed a slight tightening in risk premia, while the euro traded near a modestly stronger footing against the dollar, signaling an ongoing dialogue between currency valuations and policy expectations. These movements illustrate how the euro area balance of growth, inflation, and policy guidance continues to influence cross-asset correlations for investors positioned in both the domestic and international markets.