HE mountain goat 35 started this Thursday’s session, posting a 1.16% gain that pushed the index back toward 2018 highs, with the target approaching 10,223.80 points as traders awaited the final ECB Governing Council meeting of the year following the Federal Reserve’s decision to hold rates steady.
Analysts surveyed by Europa Press suggested the euro area will likely see an unchanged policy stance from the ECB, with markets pushing expectations for the next rate cut further into 2024. Despite progress in restraining inflation, easing price pressures were cited as the reason the ECB might maintain rates during the upcoming meetings. The Bank of England, the Swiss National Bank, and the Bank of Norway were also on the calendar, with decisions poised to shape market direction after the day’s events.
In Washington, the Federal Reserve announced it would keep the federal funds target range at 5.25% to 5.5%, the highest level since January 2001. This decision underscored a cautious stance as policymakers weigh inflation trends and growth signals amid global financial volatility.
On the inflation front, the Consumer Price Index released in the morning under the Spanish macroeconomic framework showed a 0.3% decline in November from October. The annual rate slowed by three-tenths to 3.2% thanks to cheaper fuel, a softer ride in tourism-related packages, and lower food prices. These components helped temper price growth, though service sectors still faced upward pressure in some areas.
At the market’s open, the Ibex 35 saw notable gains from several names. Acciona Energía climbed 5.69%, Solaria rose 4.45%, Fluidra advanced 3.54%, and Grifols rose 3.44%. The sole laggard among the leading components was Mapfre, which slipped by 0.05% as investors reassessed risk and sector exposure.
European equities joined the mood of early strength, with London up around 1.78%, Paris 1.41%, Frankfurt 1.26%, and Milan 1.10%. The broad optimism reflected a combination of positive corporate news, lower inflation pressures, and growing expectations that monetary policy will remain restrictive but predictable in the near term.
Oil prices moved higher at the start of trading, with Brent crude futures signaling continued strength in global energy demand. The dollar, the region’s benchmark currency, firmed to around $74.75 per barrel while U.S. benchmarks showed a concurrent rise, signaling ongoing demand dynamics and supply discipline across energy markets.
In the foreign exchange market, the euro traded near parity with the dollar, around 1.0882. Spain’s risk premium hovered around 95.3 basis points, while the yield on the Spanish 10-year bond sat near 3.036%, reflecting a combination of growth prospects and the cautious tone of European policy outlooks. Market participants kept a close watch on currency moves as policy expectations and inflation signals continued to influence risk sentiment across asset classes.