The Ibex 35 began the trading session on Friday with a modest decline of 0.25%, a move that placed the index in a secondary position among major European benchmarks as traders waited for the US employment report. By 09:01 a.m. local time, the index hovered around 8,387 points while investors anticipated fresh payroll data from the United States and a slate of Spanish unemployment statistics due for release that day.
In November, the number of people registered as unemployed at the offices of Spain’s public employment services, previously known as Inem, fell by 33,512, or 1.1 percent, month-on-month. This represented the second-largest drop within the current monthly series, with the largest decline having occurred in 2021 when unemployment numbers decreased by 74,381. These figures, reported by the national statistical authorities, suggest a continued improvement on the jobs front as the economy bides its time amid broader macro headwinds.
Security Social also showed weakness in November, recording a net loss of about 155,000 contributors, a development largely driven by a pronounced drop in the hospitality sector. The plunge in hospitality employment contributed to a noticeable reduction in total Social Security affiliates compared with the prior month, underscoring the fragility of consumer-facing segments during the period.
Following yesterday’s 0.53 percent gain, traders watched for guidance from global policymakers as Jerome Powell signaled that the U.S. Federal Reserve is expected to maintain a gradual tightening path, with a 75 basis point rate increase remaining a possibility in December. The Madrid stock market reopened the session approaching, but not crossing, the psychological threshold of 8,400 points as investors weighed the implications of a sustained monetary stance on equities.
In the early trading hours, the most pronounced declines among Spanish equities were recorded by Caixabank, down 1.7 percent; Repsol, down 1.28 percent; Telefónica, down 1.18 percent; Enagás, down 1.08 percent; Bankinter, down 0.9 percent; and Sabadell, down 0.8 percent. On the brighter side, Ferrovial ticked up about 0.27 percent, Amadeus rose roughly 0.12 percent, and Cellnex Telecom gained around 0.06 percent. These moves illustrate the mixed sentiment across sectors amid ongoing macro uncertainty.
Across Europe, the trading day opened with softer tones. Frankfurt edged down 0.2 percent, Paris slipped 0.3 percent, and London traded 0.4 percent lower, reflecting a cautious mood as investors balanced domestic fundamentals with global policy signals.
Commodity markets also showed slight moves. The Brent crude benchmark, a reference for Europe, edged higher by about 0.13 percent to around $86 per barrel, while WTI crude in Texas slipped marginally by 0.11 percent to about $81 per barrel. These price movements reflect ongoing supply considerations and demand expectations amid shifting risk appetites.
In foreign exchange markets, the euro traded near $1.0516 against the U.S. dollar, while the Spanish risk premium hovered near 99 basis points. The yield on the benchmark ten-year Spanish government bond stood at approximately 2.787 percent, signaling a modest uptick in borrowing costs that can influence both domestic investment and consumer finance decisions.
Overall, market participants continue to monitor a complex mix of domestic indicators and international policy cues. Analysts note that unemployment trends within Spain, the health of the hospitality sector, and the trajectory of U.S. monetary policy will collectively influence equity performance in the coming days. Investors are advised to consider diversification and risk management as macro data flow accelerates and policy expectations evolve. [Attribution: Market Data Desk]