Global markets face volatility amid inflation and retail sales shifts

Global financial markets are navigating volatility driven by geopolitical tensions in the Middle East and shifting economic indicators. The Spanish Ibex 35 experienced a mixed week, closing with slight declines after reaching recent highs. Investors remain focused on inflation data, with Spain reporting a 3.6% year-on-year increase in July, while uncertainty persists regarding the Strait of Hormuz and its impact on oil prices.

In the United States, retail sales fell in July, marking the largest decline in over a year. This unexpected drop has fueled speculation regarding consumer strength but also bolstered expectations that the Federal Reserve may pause interest rate hikes. While the S&P 500 managed a third consecutive weekly gain, the Dow Jones saw declines.

Individual stocks are also driving market movement. Grifols saw a significant drop following the indefinite closure of its clinics in Canada due to regulatory investigations, while defense firm Indra saw gains amid increased European military spending. Oil prices, specifically Brent and WTI, remain sensitive to the ongoing tensions between the US and Iran.