The market began the session with a modest gain of 0.41 percent, lifting the selector to a position just above 8300. Early momentum followed China’s announcement that borders will reopen on January 8 and quarantine will no longer be required in a new step toward easing pandemic controls. This shift toward reopening set a positive tone across European indices as traders assessed the next moves in policy and economic data.
Midweek focus shifted to the United States where pending home sales were slated for release, while investors anticipated euro area CPI and key manufacturing indicators from China to finish the week. The calendar hinted at a broad stream of data that could shape expectations for inflation and growth in the near term, influencing central bank thinking across major economies.
Following last week’s 1.9 percent rally driven by central bank communications, Madrid opened the session with the benchmark index hovering above the 8300 level as traders digested the latest policy signals and global developments.
When the market opened, most stocks moved higher with a broad risk-on mood. Leading the gains were Repsol up 1.82 percent, Meliá Hotels International rising 1.36 percent, ArcelorMittal up 1.26 percent, Aena up 1.25 percent, Acerinox increasing 1.2 percent and IAG up 1.09 percent. The day suggested a constructive start for the European equity complex even as participants remained attentive to cross‑border policy updates and economic indicators coming from major markets.
The Rest of Europe opened higher by about 0.8 percent with Frankfurt and Paris making gains while London stayed closed for the session. Oil markets joined the positive tone as Brent crude edged up 0.27 percent to around 84 dollars per barrel, signaling continued resilience in European energy pricing. In the U.S. oil complex, the Texas benchmark rose about 0.75 percent, trading near 80 dollars per barrel.
On the currency front the euro traded around 1.0655 against the U.S. dollar as traders weighed the implications of continued monetary normalization. Spain’s risk premium remained elevated and the yield on the benchmark ten-year government bond hovered near 3.50 percent, reflecting a cautious but evolving risk backdrop as economic data flow continues.
Market participants are watching for fresh data and central bank commentary that could reshape near-term expectations for inflation, growth, and policy trajectories across North America and Europe. The balancing act between reopening momentum and inflation concerns remains a central theme for traders seeking to calibrate risk and positioning in a climate of shifting global restrictions and policy signals. [Market data cited from multiple financial desks; this summary attributes observed price moves and benchmark levels to standard market reporting sources.]