The Ibex 35 is trading with slight declines at the start of the week, dragged down by the rise in Brent oil above $90 following the escalation of conflict in the Middle East.
Ibex 35 futures have begun this Monday's session with moderate declines, reflecting the nervousness dominating global markets. The escalation of hostilities between the United States and Iran in the Middle East has driven oil prices, which now exceed $90 per barrel for the Brent benchmark.
Crude oil is up more than 3% in the early hours of trading, reviving inflationary fears and complicating the outlook for central banks. The Strait of Hormuz, through which a significant portion of global crude traffic passes, is at the centre of geopolitical concerns.
Asian stock markets are also registering widespread losses, dragged down by the same factor. This is compounded by a week packed with earnings results from the technology sector in the United States, which will test investors' confidence in the artificial intelligence business.
Rising oil, inflation on the horizon
The rise in oil is the main burden for European stock markets. Each increase in crude raises energy costs for companies and reduces margins, in addition to fuelling underlying inflation. Investors fear that the conflict in the Middle East could extend and affect supply routes.
According to market sources, the military escalation in the region has caused the partial disruption of some shipments through the Strait of Hormuz, justifying the rise in Brent. Although there is currently no total cut, the risk of a greater escalation keeps operators on edge.
In this context, Ibex 35 futures point to a flat or slightly negative opening, in line with the rest of the European markets. The Spanish index will try to hold the level of 11,000 points, a key support in recent weeks.
Tech results and macro data in focus
This week is marked by the publication of results from major US technology companies, such as Microsoft, Alphabet, and Meta. These earnings will be crucial in assessing whether the optimism surrounding artificial intelligence is justified or if the market has overvalued the sector.
On the macro front, today the interest rates in China and the PPI in Germany will be announced. Both data points will provide insights into the health of the two largest economies in the world and the evolution of industrial prices in the eurozone.
For individual investors, analysts recommend maintaining caution and not taking aggressive positions until geopolitical uncertainty dissipates. Oil above $90 is a warning sign that could trigger corrections in the markets.
Spanish companies: notable movements
On the corporate front, Santander has completed its early retirement plan without a cap on departures and from the age of 55, according to Cinco Días. The measure aims to adjust the workforce to the bank's new needs.
Indra has put its committed investments under review and is targeting Catalonia as a region for growth, according to El Economista. The company is seeking new avenues for expansion in the Spanish technology market.
Amadeus has managed to collect €9.7 million in India after a lengthy legal battle with Ebix, according to Expansión. The ruling is a relief for the travel technology company.
Meanwhile, ACS, through its subsidiary FlatironDragados, will lead the joint venture designated for the infrastructure project of the Roberts Bank Terminal 2 in Vancouver, according to Reuters.
Amancio Ortega is targeting purchases in assets and logistics worth €3 billion, according to Expansión. The founder of Inditex continues to diversify his wealth into the real estate and logistics sectors.
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