Spain’s stock market heads into the new week with momentum intact—but with plenty of cross‑currents that could decide whether the IBEX 35 can hold above the psychologically important 17,000-point area it briefly reached on Friday.
The benchmark IBEX 35 closed last week (Dec 8–12) at 16,854.4, up 0.99% on the week and up 45.36% so far in 2025, according to the official weekly bulletin from BME (Bolsas y Mercados Españoles). Sector performance stayed telling: banks outperformed again (IBEX 35 Banks +1.39% weekly; +103.39% YTD), while energy lagged (IBEX 35 Energy −1.67% weekly; +28.54% YTD). [1]
With markets closed on Sunday, the week-ahead narrative for Bolsa de Madrid is now dominated by three forces: central-bank expectations (ECB next), year-end positioning and derivatives flows, and stock-specific catalysts led by Inditex, Naturgy and Iberdrola.
Where the Spanish stock market stands heading into Monday
If 2025 has a single headline for Spanish equities, it’s this: Spain has been one of the standout performers globally, powered by the index’s bank-heavy structure and the renewed leadership of Inditex.
Local market analysis notes the IBEX touched 17,000 points on Friday—an unprecedented level—while holding a year-to-date gain around 45%, putting 2025 on track to be its strongest year in decades. [2]
Under the surface, leadership remains concentrated:
- Top weekly gainers (IBEX 35): ArcelorMittal (+5.71%), ACS (+4.25%), Rovi (+4.01%), IAG (+3.87%), Acciona (+2.76%).
- Top weekly laggards: Naturgy (−8.53%), Enagás (−3.20%), Sacyr (−2.84%), Repsol (−2.76%), Merlin Properties (−2.26%). [3]
That split—industrial/financial strength versus energy/defensives softness—matters for the week ahead because the next catalysts (ECB messaging, bond yields, and rebalancing flows) tend to reward or punish the same leadership groups.
What moved the IBEX 35 last week (Dec 8–12): the key headlines investors traded
1) Caution early week: yields rose, stocks chopped sideways
The week began with muted European trading and a cautious tone heading into the U.S. Federal Reserve decision. On Monday, European stocks finished slightly lower overall, but Spain’s IBEX 35 was marginally higher (+0.1%), even as higher bond yields weighed on parts of the market. [4]
By Wednesday, the wait‑and‑see mood remained dominant. European shares ended flat and Spain’s benchmark was down 0.2% as investors positioned ahead of the Fed. [5]
2) Naturgy: the week’s biggest single‑stock shock in Madrid
The standout corporate headline for the Madrid exchange came from Naturgy, which was hit hard after BlackRock sold a 7.1% stake via an accelerated placement.
Reuters reported the placement involved 68.8 million shares at €24.75, raising about €1.7 billion and leaving BlackRock with ~11.42%. The deal price represented about a 5.4% discount to the prior close, and Naturgy shares became the worst performer on the IBEX 35 on the day of the announcement. [6]
The move also fits a broader theme: investors are increasingly watching free float, shareholder exits and “who owns what” in Spanish utilities, because those factors can drive both valuation and index flows into year-end.
3) Inditex: record highs and a fresh wave of upgrades
At the opposite end of the spectrum, Inditex delivered the kind of large‑cap leadership the IBEX 35 needs to grind higher.
Local market coverage says Inditex closed Friday at €55.76 (+1.2% on the day), near record territory, implying a market value of about €173.8 billion. The same reporting highlights that quarterly results triggered a sharp multi‑day rally earlier in December, alongside a wave of analyst upgrades and higher targets from major banks. [7]
4) Macro backdrop: Fed cut optimism faded into “AI jitters” on Friday
By Friday, the mood shifted globally. Reuters described a risk‑off tone tied to renewed worries about an AI-led market bubble, which pulled European shares lower and erased earlier-week gains for the STOXX 600. Importantly for the week ahead, Reuters noted that focus would now turn to the European Central Bank’s final rate decision of the year. [8]
Spain’s market narrative ended the week with a familiar pattern: strong underlying trend, but sensitive to global risk sentiment—especially when Wall Street turns sharply.
Central banks and bonds: why the ECB matters even more for Spain than for many peers
Spain’s equity rally in 2025 has been built on two pillars:
- Banks (profits, dividends, buybacks, and rising market caps)
- A small set of global-quality leaders (Inditex, Iberdrola, infrastructure names)
Both pillars are highly sensitive to rates—just in different ways. Banks care about the rate path and credit conditions, while defensives and growth names care about discount rates, bond yields and risk appetite.
Fed: the cut happened—now the “pause” debate begins
A December market note from CaixaBank Research said the Federal Reserve cut by 25bp to 3.50%–3.75% and signaled it would likely pause to assess the economy. The report also described typical post‑cut market moves—lower Treasury yields, stronger equities, and a softer dollar. [9]
Even though Spain is euro-based, this matters because U.S. policy influences global financial conditions, risk sentiment, and sector rotation—especially in bank-heavy indices like the IBEX 35.
ECB: Lagarde hints the bar for changes is high
For the European Central Bank, the market’s working assumption is stability.
Reuters reported ECB President Christine Lagarde suggested the euro zone economy has proved more resilient than feared and that the ECB could upgrade growth projections again. She also repeated that policy is in a “good place”—a signal investors interpreted as pointing to no near-term rate change. Reuters added that investors saw a close-to-zero chance of a rate change at the ECB’s Dec 18 meeting. [10]
That sets up an important dynamic for Madrid: if the ECB stays steady but acknowledges stronger growth (or sounds even slightly hawkish), bond yields could rise, and that can quickly reshape leadership inside the IBEX (banks vs. defensives, cyclicals vs. utilities).
Iberdrola: a reminder that utilities can still lead—when the narrative shifts
While energy as a sector lagged last week, Iberdrola drew attention from analysts.
A Spanish market report said Goldman Sachs raised Iberdrola’s price target to €20.50 from €19.50, implying about 15.8% upside over the next year. The same article tied the bullish case to expectations of rising European electricity demand, including growth from data centers, and projected higher earnings power in coming years. [11]
For week-ahead positioning, this matters because Iberdrola often trades as a hybrid: part defensive, part growth, part rate-sensitive. If the ECB delivers a message that supports longer-term investment and demand visibility, Iberdrola can regain leadership even when “energy” headlines elsewhere are negative.
The IBEX index review: no constituent changes, but meaningful free-float adjustments
One of the most underappreciated drivers of December trading is mechanical: index methodology changes and reweighting flows.
BME’s Technical Advisory Committee (TAC) reported no changes to IBEX 35 constituents at its December review, but it changed free float factors for several companies due to changes in block ownership:
- Acciona Energía: 20% → 10%
- Colonial: 40% → 60%
- Solaria: 100% → 80% [12]
BME also stated these adjustments would be applied from Dec 22, 2025, with the index adjustment occurring after the close on Dec 19. [13]
Why it matters: passive funds and benchmark-aware managers often trade these changes ahead of implementation—so next week can bring stock-specific volume spikes that are not necessarily linked to fundamentals.
Mid- and small-caps: changes that can drive sharp moves
While the IBEX 35 is the headline, BME also published changes to the IBEX Medium Cap and Small Cap indices—often impactful due to lower liquidity.
In Medium Cap, Cirsa and DIA were added, while eDreams was removed; Grenergy’s free float factor was adjusted. [14]
In Small Cap, eDreams, GAM, Izertis and Vocento were added, and DIA, Iberpapel, Inmocemento and Prisa were removed, with implementation aligned to the same Dec 22/Dec 19 timetable. [15]
This is relevant for the broader Bolsa de Madrid ecosystem because mid/small-cap index moves can spill into sentiment and spur retail and institutional activity, even if the IBEX 35 itself is stable.
Week ahead (Dec 15–19): what to watch on Spain’s Bolsa de Madrid
Here are the major catalysts likely to shape trading in Madrid this week.
1) ECB decision week: the “final meeting of the year” effect
Even if rates don’t change, the ECB meeting can move markets via:
- growth and inflation projections
- hints about whether the next move is a cut, a hike, or an extended hold
- tone around credit, wages, and the transmission of policy
Lagarde’s comments about potentially upgrading growth projections—and markets pricing in no change—raise the odds that language surprises, not rate action, drive volatility. [16]
2) IBEX derivatives: December settlement and “triple-witching” style flows
Spain’s futures market can amplify year-end moves. Investing.com’s contract details for IBEX 35 futures show a settlement day of 12/19/2025 for the December contract, a date that often concentrates hedging and roll activity. [17]
That is also the same close referenced by BME for the index adjustment timing (after close on Dec 19), which can further intensify end‑week rebalancing. [18]
3) Inditex follow-through: can the leader keep leading?
Inditex’s record push and analyst-upgrade wave helped keep the IBEX resilient even as global risk appetite cooled late in the week. [19]
The near-term question is whether the stock consolidates—dragging the index into a range—or extends higher and keeps 17,000 in play.
4) Naturgy and utilities: watch for stabilization after the stake sale
Naturgy’s sell-off was driven by a specific catalyst (a large placement at a discount), but the bigger story is ownership structure and free-float normalization. Any signs of follow-on selling—or, conversely, a strong bid emerging—could influence sentiment across Spanish utilities. [20]
5) Risk sentiment: “AI bubble” worries and global sector rotation
Friday’s global wobble matters because the IBEX’s rally has increasingly depended on steady risk appetite and continued willingness to own cyclicals and banks. Reuters flagged that a renewed risk-off move linked to “AI jitters” knocked European stocks lower, setting a more cautious tone into the ECB week. [21]
Technical levels in focus: 17,000 is the headline, 16,700 is the line in the sand
From a market-structure perspective, two levels stand out:
- 17,000: a psychological milestone the IBEX has now shown it can reach intraday. [22]
- ~16,700: the area around last week’s low (16,712.2 in BME’s weekly bulletin), a practical support zone if volatility picks up. [23]
If the ECB is perceived as more hawkish than markets expect, the first test is whether the IBEX can hold above that support without leadership cracking in banks and Inditex.
Bottom line for the week ahead
Spain’s Bolsa de Madrid enters the week with a strong 2025 trend still intact, backed by banks’ exceptional year-to-date run and Inditex’s renewed leadership. [24]
But the next five trading days bring a rare alignment of potential volatility triggers—ECB messaging, derivatives settlement, and index methodology adjustments—at a time when global sentiment has shown it can flip quickly. [25]
This article is for informational purposes only and is not investment advice.
References
1. www.bolsasymercados.es, 2. cincodias.elpais.com, 3. www.bolsasymercados.es, 4. www.reuters.com, 5. www.reuters.com, 6. www.reuters.com, 7. cincodias.elpais.com, 8. www.reuters.com, 9. www.caixabankresearch.com, 10. www.reuters.com, 11. cincodias.elpais.com, 12. www.bolsasymercados.es, 13. www.bolsasymercados.es, 14. www.bolsasymercados.es, 15. www.bolsasymercados.es, 16. www.reuters.com, 17. www.investing.com, 18. www.bolsasymercados.es, 19. cincodias.elpais.com, 20. www.reuters.com, 21. www.reuters.com, 22. cincodias.elpais.com, 23. www.bolsasymercados.es, 24. www.bolsasymercados.es, 25. www.reuters.com
