The market opened with a cautious tone as Ibex 35 edged down slightly, settling around 8,957.92 points after a morning of uncertain headlines. Investors faced a day shaped by the Israel and Hamas developments and a wave of corporate earnings reports from Spain, prompting a careful reassessment of risk in the near term.
Ahead of the session, Santander Bank announced to the National Securities Market Commission that nine month profits reached 8 billion 143 million euros, marking a solid year over year increase. The rise was supported by stronger net interest income and fee generation across Europe and Mexico, which helped offset higher provisions. The lender emphasized that the gains in revenue more than offset the uptick in risk reserves, underscoring a resilient earnings trajectory in a volatile environment.
Market participants also anticipated remarks from major central bankers, with expectations centered on guidance from the European Central Bank and the United States Federal Reserve, as both institutions digest recent inflation data and the evolving growth outlook. The tone from those institutions could influence currency moves and bond yields, shaping sentiment across global equity markets today.
On the macro front, attention remained on the Industrial Price Index compiled by the IPRI together with insights from the Munich-based Ifo Institute, which together provide a barometer of manufacturing costs and business sentiment across Europe. Investors use these indicators to gauge the strength of domestic demand and the potential impact on corporate earnings later in the year.
In early trading, the Ibex 35 saw notable gains among selective names, with Acerinox up by about 1.08 percent, Logista advancing around 0.78 percent, and ArcelorMittal rising roughly 0.8 percent. Conversely, several heavyweights weighed on the index, including Ferrovial down about 1.92 percent, Telefónica lower near 1.83 percent, and Inditex slipping around 1.17 percent, reflecting sector rotation and company-specific dynamics that are shaping the intraday performance.
European equity markets began the session with a mixed tone, fading slightly in contrast to the previous day’s performance. Paris, Milan, Frankfurt and London were trading with modest declines, reflecting broad risk-off sentiment and cautious positioning ahead of key data releases and central bank communications later in the week.
Commodity markets showed a steady start to the session, with Brent crude trading in a narrow range as traders weigh supply concerns and potential demand shifts. The US dollar, serving as the reference for many regional markets, traded a touch higher versus commodity-linked currencies, while the euro remained constrained by the latest round of inflation readings and risk sentiment. A softened dollar helps some regional exporters but can complicate imports priced in greenbacks.
In currency markets, the euro drifted around the 1.059 level against the dollar as Spain’s risk premium hovered near the broader euro area range. The 10 year Spanish government bond yielded around 3.93 percent, reflecting ongoing concerns about fiscal dynamics and the regional growth outlook. The day’s price action will be influenced by global risk appetite, energy prices, and the trajectory of monetary policy in major economies.