The market action today kicked off with notable momentum on the Ibex 35, closing a week that had traders watching a mix of corporate results and geopolitical headlines. The index rose by 0.38 percent to hover around 9,296 points, reflecting tempered optimism despite ongoing concerns in global markets. In Spain, data released for October showed a rise in unemployment by 36,936 people while the total employment roll increased by 92,862 new jobs as families prepared for the back-to-school season. These numbers underscored a complex backdrop for investors, balancing labor market resilience with broader economic uncertainties.
Throughout the week, the market’s focus remained split between corporate earnings and the heavier shadows cast by the Israel-Hamas conflict. Earnings reports and guidance emerged as a primary driver of market sentiment, shaping expectations for the near term as traders assessed how companies might navigate heightened volatility and supply chain risks. The stance of investors remained cautious, yet there were pockets of positive reaction to better-than-expected results and strategic outlooks from several sectors.
Before the bell, Acerinox disclosed to the National Securities Market Commission that it achieved a net profit of 348 million euros for the first nine months of the year, a figure that marked a substantial year-over-year decline from 741 million euros recorded in the prior year. The results reflected the challenges facing the steel and metals complex, including shifting demand dynamics and pricing pressures that have weighed on profitability this year. The report added a layer of depth to the broader European earnings landscape as investors weighed sector-specific headwinds against regional economic tempo.
At the early trading stage, the Ibex 35 recorded the strongest gains among its members with Solaria advancing around 1.3 percent, Rovi up about 1.24 percent, and Telefónica contributing roughly 1.12 percent. On the downside, the so-called laggards included Acerinox and Naturgy, which slid about 1.48 percent, while Inditex rose modestly, offsetting some of the weakness. The day’s movements highlighted the uneven dispersion within the index as different pillars of the market reacted to a mix of earnings, guidance, and external risk factors.
European equities traded higher at the open on Friday, with gains in major markets signaling a cautious but broad risk-on tone. The gains were modest but widespread, as Milan, Frankfurt, London, and Paris posted positive starts to the session, reflecting a mosaic of regional factors that supported a rebound in risk appetite across the continent.
The commodity and currency backdrop also influenced early momentum. Brent-grade crude oil held firm, while the US dollar—often used as a benchmark by European markets—appreciated about 0.46 percent, briefly trading above the $87 mark per barrel. The energy complex remained sensitive to geopolitical developments and supply considerations tied to Iran, the broader conflict in Ukraine, and commentary from Saudi Arabia and other producers regarding potential supply adjustments. These dynamics continued to color risk assessments across asset classes as traders priced in the latest developments.
Meanwhile, the euro traded around the exchange rate of 1.0629 dollars, with Spain’s risk premium hovering near 103.6 basis points. The yield on the benchmark 10-year Spanish government bond stood near 3.766 percent, reflecting a climate of elevated, yet manageable, financing costs for sovereign issuance. In short, the day’s setup painted a picture of a cash market navigating a blend of earnings noise, geopolitical tension, and macroeconomic signals, all converging to shape near-term price action and policy expectations for European equities and their global peers.