Market Update Snapshot
The market corridor opened with notable momentum as the benchmark index touched 9,907.2 after a modest rise of 0.17 percent, a day that coincided with the Federal Reserve’s latest policy signals in the United States and key economic releases from Spain including GDP and the consumer price index. Investors kept a close eye on how these data points will shape the global growth outlook and the path of interest rates in the coming months.
In corporate news, BBVA publicly reported to the National Securities Market Commission that its attributable net profit for 2023 rose to a record €8,019 million, reflecting a 22 percent year over year improvement once the net effect of the acquisition is excluded. The bank highlighted strong performance across its operations, noting several expansion initiatives in Madrid and other Spanish markets during the year 2022. Corporate earnings momentum underscored a broader trend of resilient profitability across the European banking sector.
ACS informed the financial supervisor that the Supreme Court ruling related to Abertis would have a negative impact of €14.5 million on its consolidated results, a figure the group described as immaterial and not altering its overall profit trajectory. Abertis had projected an impact near €29 million for 2023 earnings as a point of reference in its market communications.
On the macro front, Spain’s economy expanded by 2.5 percent in 2023, a pace that exceeded the government forecast by a comfortable margin. Following a 0.6 percent quarterly rebound in the final quarter, the annual growth rate accelerated by two tenths relative to the preceding quarter. These figures align with the latest National Accounts data released by the National Institute of Statistics in Spain and point to a steady recovery path through the first part of the new year.
The January CPI reading came in 0.1 percent higher than December, reflecting a notable uptick in electricity costs that lifted the year over year rate to 3.4 percent. This soft domestic inflation signal accompanies other energy market dynamics that influence household budgets and consumer spending trends across the euro area.
During Tuesday’s session, the Ibex 35 displayed a mix of performances with a handful of components leading gains. Rovi rose by 1.23 percent, Grifols added 1.07 percent, ACS gained 0.98 percent, Solaria advanced 0.68 percent, and Banco Santander moved ahead 0.43 percent. On the downside, Fluidra slipped by 0.87 percent, while IAG declined 0.47 percent, Unicaja Banco fell 0.35 percent, Cellnex dropped 0.28 percent, and Acciona Energía shed 0.25 percent. These movements illustrate a cautious but broad appetite for equities within the index as investors weigh earnings signals against macro uncertainty.
The European equities landscape opened with a mixed tone. Milan nudged higher by around 0.15 percent, while Frankfurt, London, and Paris posted gains of roughly 0.28 percent, 0.26 percent, and 0.13 percent respectively, signaling a cautious risk-on environment across major European markets at the start of the session.
At the opening bell for energy markets, Brent grade crude maintained a marginal uptick, climbing 0.01 percent to 81.84 dollars per barrel. WTI (West Texas Intermediate) hovered around 76.83 dollars per barrel, up by about 0.07 percent, reflecting modest stability amid shifting supply and demand dynamics on a global scale.
In the currency arena, the euro firmed against the dollar, touching an exchange rate of 1.0821 dollars per euro. Meanwhile, the benchmark Spanish 10-year government bond yielded about 3.092 percent, suggesting continued cautious borrowing costs for the sovereign debt market in the current rate environment.
Overall, market signals point to a data-driven mood in which corporate earnings, national inflation metrics, and energy prices converge to shape investor expectations for the near term. Analysts will continue to parse the interaction between monetary policy statements and the trajectory of consumer prices as Spain and its European peers navigate a period of gradual economic normalization.