The IBEX 35 faced a 0.8 percent decline in Tuesday trading as investors weighed the latest movements while the IMF met to assess this year’s economic trajectory and forecasts for the next few years. The focus was on how the high Iberian index would respond to a broader global backdrop that has been tethered to policy signals and corporate earnings in Europe and beyond.
In Madrid, the benchmark had closed the previous session slightly higher, yet it opened this morning with a noticeable drop, trailing the softer momentum seen on Wall Street. The index briefly hovered around the 7,300 level in Asia, a psychological barrier that traders watch closely as markets react to shifting risk appetites. The Nikkei also moved lower, dipping around 2.6 percent amid renewed concerns over growth and supply conditions in Asia.
During the early part of the session, the majority of IBEX 35 components traded in the red. Caixabank led the declines with a loss near 2 percent, followed by Acerinox and Repsol, both off by about 1.8 percent and 1.8 to 1.9 percent respectively. BBVA, Grifols, Sabadell, and Santander all traded down in tight proximity, reinforcing the broad-based pressure across the index as investors weighed credit headwinds, commodity movements, and regional policy cues.
Across continental Europe, other major equity benchmarks opened weaker as well. Frankfurt and London posted declines around 0.6 percent, while Paris showed a softer 0.8 percent drop, signaling a synchronized start to the session for major European markets amid a global recalibration in risk sentiment.
On the commodity front, Brent crude, a key benchmark for European energy markets, traded near 95 dollars a barrel, slipping almost 1 percent as investors assessed demand prospects and supply dynamics in the near term. In the United States, Texas light crude followed a similar pattern, trading around 89 dollars per barrel after a modest retreat.
Meanwhile, the euro traded at roughly 0.9704 dollars, reflecting ongoing currency flows in a period of elevated macro and geopolitical uncertainty. The euro zone risk premium stood around 120 basis points, while the yield on the ten-year Spanish government bond was near 3.48 percent, signaling cautious sentiment among fixed income investors and the potential for further adjustments as policymakers communicate their outlook.