Ibex 35 faces volatility amid inflation and debt concerns

The Spanish stock market has experienced significant volatility. The Ibex 35 recently saw a decline of over 2%, dropping to approximately 19,005 points due to banking sector pressure and concerns regarding high public debt levels. However, subsequent sessions showed the index stabilizing, managing to retain the 19,000-point mark with slight gains.

Economic pressures are being driven by rising inflation across Europe, fueled by energy shocks and geopolitical instability in the Middle East. While the 10-year Spanish bond yield has seen fluctuations, experts from BBVA suggest that a global recession is not currently foreseen. Instead, they point toward an extraordinary investment cycle driven by technology, artificial intelligence, and the need for infrastructure, energy, and defense reinforcements.

In the energy sector, Spanish companies like Repsol have seen substantial growth, with Repsol's value increasing significantly due to high oil prices and supply constraints. Other notable performers in the Spanish market include ArcelorMittal in the basic resources sector and various companies benefiting from the broader investment cycle.