On Friday, the Ibex 35 started higher, continuing a quiet ascent through the final trading session of the year. The index touched a notable level as a small but steady gain kept market momentum intact. The finishing posture of the day showed a broader market breath, with mainly positive moves across the board and several companies contributing to the early lift in trading activity.
In Spain, the announcement of the Consumer Price Index brought no surprises for December, signaling that prices held steady versus the prior month. The absence of a monthly change did not dampen confidence; rather, investors recalibrated expectations and remained positioned for the next data points. The annual rate of borrowing costs moved slightly higher as investors priced in the stability of consumer prices alongside a measured stance from policymakers. The macro backdrop included a modest rise in the price level for food and non-alcoholic beverages, which supported, to some extent, the overall inflation profile observed in the last month of the prior year.
Turning to core inflation, which excludes volatile unprocessed food and energy, December showed a retreat. The figure slipped by seven-tenths of a percentage point, landing at 3.8 percent. This level marked the lowest pace seen since March of the previous year and stood just a touch above the overall CPI. For traders, the divergence between core and headline measures offered a nuanced view of underlying price pressures, with core inflation signaling a softer underlying trend than the broader price index.
As the session progressed, the standout contributors to gains within the Ibex 35 were clear. Inditex posted a solid advance, followed by Amadeus and Indra, each pushing higher on the morning. On the downside, a few members lagged, with Rovi, Banco Sabadell, and Repsol posting modest declines as other stocks led the market higher. The balance of gains and losses highlighted the uneven momentum common in a year-end trading environment, where liquidity can be thinner and traders more selective about positions.
Across Europe, the mood was upbeat at the opening with major indices trading higher. Paris led the gains with a modest advance, while Milan, Frankfurt, and London also moved into positive territory. The early regional performance reflected optimism about economic resilience and company earnings, reinforcing a cautious but constructive risk appetite among investors who have navigated a year of volatility.
Energy markets showed a comparable tone at the outset of the day. The Brent crude price found support as the global energy complex steadied, with crude benchmarks nudging higher in early trade. The U.S. index serving as a key gauge for European markets also rose, signaling ongoing demand expectations and a belief that supply conditions would remain orderly into the next quarter. The regional energy complex benefited from these price movements, contributing to a broader sense of market balance.
In currency markets, the euro traded near the 1.11 level against the U.S. dollar, with the exchange rate around 1.1074. This range suggested ongoing caution among traders as they weighed inflation data, economic growth indicators, and central bank paths. Spain’s risk premium tracked near 92.5 basis points, reflecting a relatively contained risk assessment for the sovereign market. The 10-year bond yield settled around 2.891 percent, consistent with a measured rate environment that favors steady investment flows over speculation.
Overall, the session painted a picture of cautious optimism as the year drew to a close. Investors balanced the stability in consumer prices with the need to monitor evolving monetary policy signals. Sector leaders demonstrated resilience, while a few laggards reminded market participants that opportunity and risk continue to coexist in a dynamic financial landscape. The day’s price action and data releases provided a foundation for positioning ahead of the year-end lull and the upcoming cycle of quarterly results, which could merit renewed attention from traders and portfolio managers alike.
As the closing bells rang, market participants reflected on the mix of inflation insights, earnings potential, and macro signals that will guide decisions in the quieter December period and into the early days of the new year. The balance between demand, cost pressures, and policy expectations remains a focal point for investors seeking to understand how the next chapters in the global economic story may unfold.