The Ibex 35 opened this Wednesday with a dip of 0.35%, placing it at 11,173.9 points as of 9:00, in a session dominated by corporate earnings in Spain. The spotlight falls on the interim results of Banco Santander, Endesa, Repsol, and Iberdrola. The day’s mood is shaped by the fresh financial disclosures and the cautious tone that tends to accompany mid-year updates from large blue-chip names.
Before the market bell rang, Banco Santander reported to the Comisión Nacional del Mercado de Valores that it achieved net attributable profit of 6.059 billion euros for the first half of 2024. This figure marks a 15.6% year-on-year increase, signaling a solid expansion in profitability as the bank navigates a challenging interest-rate environment and evolving credit dynamics. Investors weigh margins and loan demand against the bank’s efficiency improvements and risk management practices in a rising-rate landscape. The report underscores resilience in core banking activities and continued momentum in revenue generation across key segments. The disclosure is seen as a barometer for the Spanish banking sector’s capacity to translate a robust domestic economy into sustained earnings growth for the year ahead.
Endesa, by contrast, posted a net profit of 800 million euros in the first half, representing a 9% decline versus the same period a year earlier. The diverging trajectory reflects the sector’s exposure to energy prices, regulatory frameworks, and asset mix. Market participants parse these results for indications of how the company plans to navigate a landscape of fluctuating wholesale costs and shifting demand dynamics across its European footprint. The margin between generation and transmission activities remains a focal point as Endesa evaluates its strategic priorities and capital allocation for the remainder of 2024.
Meanwhile, Iberdrola reported a net profit of 4,134 million euros in the first half, an increase of 64% from the prior year. The jump is driven in part by hefty gains from asset sales in Mexico and is accompanied by a renewed forecast upgrade for 2024. The company notes that the new guidance reflects both ongoing efficiency improvements and favorable market conditions that support higher earnings potential across its diversified generation mix, including renewables and flexible generation assets. Analysts watch closely to see if the momentum can be sustained through the second half and how exchange-rate movements might influence reported figures.
Across the market, the leaders in early trading on the Madrid index include Banco Santander with a gain of around 0.9%, followed by Repsol at 0.53%, Naturgy at 0.27%, and Banco Sabadell edging up 0.25%. On the downside, Merlin Properties fell 2.77%, Grifols declined 1.58%, and Puig Brands dropped 1.41%. The day’s dynamic shows how sector breadth can diverge in response to company-specific news and macro signals, with some names benefiting from positive earnings momentum while others contend with cost pressures or portfolio optimization needs.
The broader European equity landscape opened lower, with Paris down 1.20%, Frankfurt down 0.67%, Milan down 0.58%, and London down 0.39%. The trading environment in Europe reflects a mix of cautious risk sentiment, inflation considerations, and the trajectory of monetary policy expectations that influence equity valuations across the region.
The Brent crude price, a key benchmark for European energy markets, rose by 0.37% at the opening, reaching $81.31 per barrel. Texas Intermediate (WTI) stood at $77.26, up 0.39%. Energy markets respond to geopolitical developments, supply dynamics, and OPEC+ policy signals, all of which shape the cost environment for producers and consumers alike. These price movements feed through to transport costs, consumer prices, and the inflation narrative that investors monitor as part of asset allocation decisions.
In the currency arena, the euro traded near $1.0845 against the dollar, while the Spanish 10-year bond yield continued its morning climb to approximately 3.229%. Fixed-income markets react to shifts in growth outlook, inflation trends, and central bank communications, with yields acting as a barometer for borrowing costs across the euro area. Traders assess potential implications for long-term fiscal stability and the capital markets’ ability to price risk in a way that supports investment and job creation.