IBEX 35 Eyes 13,900 Mark Backed by ArcelorMittal and Santander Gains

Madrid’s Stock Market Rebounds After Turbulent Week

The IBEX 35 climbed 1.04% on Friday, reaching 13,887 points and recovering part of the losses sustained earlier in the week. Leading the gains were ArcelorMittal, which rose by 2.51%, and Banco Santander, up 2.40%. On the downside, Naturgy slipped by 0.82% and Aena fell 0.53%.

This rebound follows a negative session the previous day and comes amid a volatile week marked by geopolitical instability. By Thursday’s close, the benchmark index had recorded a 1.19% weekly drop, largely due to escalating tensions in the Middle East, particularly the ongoing conflict between Israel and Iran.

Geopolitical Uncertainty Weighs on Markets

The aerial conflict between Israel and Iran entered its second week, raising concerns across global financial markets. European leaders are attempting to bring Iran back to the negotiating table. On Friday, EU foreign ministers were scheduled to meet in Geneva with Iranian officials in a bid to defuse the situation diplomatically.

Meanwhile, U.S. President Donald Trump indicated a decision regarding potential American military involvement would be made within the next two weeks. According to Reuters, Trump may be waiting to see whether Israel can achieve its military objectives independently, thereby avoiding the broader consequences of direct U.S. intervention. Juan J. Fernández-Figares of Link Gestión echoed this view, suggesting Washington may prefer to stay on the sidelines for now.

Volatility Surges Amid ‘Witching Hour’ Phenomenon

The day’s trading session was further influenced by the second “quadruple witching” event of the year, a phenomenon that typically generates high volatility as stock index futures, options, and other derivatives expire simultaneously in both European and U.S. markets. This expiration event tends to increase trading volumes and distort short-term price movements.

At midday, the IBEX 35 had already gained 1%, reaching 13,880.9 points, driven in part by investors repositioning ahead of the expiry of various financial instruments.

Israeli Strikes Escalate Conflict with Iran

In a further escalation of the conflict, the Israeli military claimed to have struck what it described as the “industrial core” of Iran’s Ministry of Defense in Tehran, including a facility linked to the country’s nuclear research and development.

At the same time, the White House reiterated that President Trump would wait a couple of weeks before deciding on potential U.S. intervention, hoping for room to negotiate over Iran’s nuclear ambitions.

Japan’s Inflation Reaches New Highs

Amid the global unrest, Japan reported a notable rise in its core inflation rate. Excluding fresh food prices, inflation stood at 3.7% in May—up 0.2 percentage points from April and marking the highest level since January 2023. The increase signals continued pressure on consumer prices in the world’s third-largest economy.

Winners and Losers on the IBEX 35

Aside from ArcelorMittal and Santander, other notable gainers included Puig (+1.89%), Grifols (+1.88%), Sabadell (+1.82%), and Acciona (+1.72%). On the losing end, Naturgy (-0.82%), Aena (-0.42%), Ferrovial (-0.16%), and Enagás (-0.07%) posted minor declines.

Broader European Markets Also in the Green

Elsewhere in Europe, major stock markets posted gains. Milan’s FTSE MIB rose 1.26%, Frankfurt’s DAX advanced 1.01%, Paris’ CAC 40 gained 0.65%, and London’s FTSE 100 was up 0.55%.

Oil Prices Show Mixed Signals

In the energy markets, Brent crude, the European benchmark, dropped 2.19% to $77.10 per barrel. Meanwhile, West Texas Intermediate (WTI), the U.S. benchmark, rose 1.09%, reaching $75.96.

Currency and Bond Markets Stay Stable

The euro traded at $1.1526 against the U.S. dollar. In the bond market, yields on the Spanish 10-year note fell to 3.158%, with the risk premium narrowing to 65 basis points—reflecting a slight easing in investor concern despite global tensions.