The Spanish index rises 0.65% at midday, surpassing July highs, supported by the moderation of the conflict in the Middle East and the half-year accounts of large companies.
The Ibex 35 was trading at 19,866.9 points on Tuesday at noon, up 0.65% from the previous day's close, thus nearing the psychological barrier of 19,900 points. In this way, the Madrid index surpassed the highs recorded on July 3, when it reached 19,852 points.
The advance occurs in a context of moderated geopolitical tensions in the Middle East, which has led to a decline in oil prices. The Brent barrel, the European benchmark, fell 2.7% to $85.9, while the US West Texas Intermediate was at $80.65 after decreasing by 2.4%.
Despite the relief in the markets, Iranian authorities denied on Monday that they had requested to negotiate with the United States and emphasized that there are no ongoing contacts. The US military has intercepted or redirected 17 commercial vessels attempting to evade the naval blockade in the Gulf of Oman, and the Iranian military command has warned that this action "will not go unanswered."
Meanwhile, Israeli Prime Minister Benjamin Netanyahu is scheduled to meet with President Donald Trump at the White House on Tuesday to discuss the situation in Iran, despite the arrest warrant issued by the International Criminal Court. Additionally, Lebanon and Israel will hold a new round of talks in Rome from August 4 to 6, led by the United States, to promote the implementation of the framework agreement signed at the end of June.
"Markets continue to assume that the de-escalation of the conflict between the US and Iran and common sense will ultimately prevail," noted Raphaël Thuin, head of capital markets strategies at Tikehau Capital. "Investors seem to consider that the parties involved have a limited appetite to escalate it, while acknowledging that the 'statu quo' is unsustainable. This combination leaves room for progress towards a new ceasefire," he added.
On the corporate front, Merlin Properties announced a recurring profit of €180 million in the first half of 2026, 8% more than in the same period last year, driven by the increase in rents from its data centres. Telefónica Brasil (Vivo) reported net earnings of 2,833.6 million reais (€486 million), a year-on-year increase of 17.9%, the largest growth in a first half in the last three years. MasOrange reported revenues of €3,763 million, a 1.3% increase, thanks to strong commercial performance and growth in the B2B business.
From a macroeconomic perspective, the Active Population Survey (EPA) from the INE revealed that unemployment fell by 213,300 people in the second quarter, a decrease of 7.87% compared to the previous quarter, reaching 22.77 million employed, surpassing the previous record of 22.46 million.
Within the Ibex 35, the biggest gains were seen in Indra (+4%), Telefónica (+2.43%), Amadeus (+2.22%), ArcelorMittal (+2.2%) and Logista (+1.89%). On the negative side, Solaria fell 1.45%, followed by Merlin (-0.98%), Banco Sabadell (-0.76%), Acciona (-0.66%) and Endesa (-0.51%).
The main European stock exchanges were also trading positively: London's FTSE 100 rose 0.55%; Paris's CAC 40, 0.59%; Frankfurt's DAX, 0.62%; and Milan's MIB, 0.27%.
In the fixed income market, the yield on the Spanish 10-year bond fell to 3.569%, with the risk premium over the German bund at 45.36 basis points. In the foreign exchange market, the euro declined by 0.11% against the dollar, to 1.1356 units.
For investors, the day reflects a moderate appetite for risk, with an eye on the evolution of oil prices and geopolitical discussions. The corporate results for the first half are supporting values, while employment data in Spain reinforces confidence in the domestic economy.
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