The IBEX 35 started the week with no clear trend, as investors focused on inflation data from the US and Europe to guide the outlook for global interest rates.

The public holiday in the UK and the US meant that trading was light on Monday, pending Friday's figures on core personal consumption expenditures (PCE), the Federal Reserve's preferred measure of inflation.

"We have two sideways or soft drip days ahead. Market halted, but not stopped ... because the bottom is still good or very good," Bankinter analysts said on the Telegram messaging app.

Eurozone inflation figures are also due on Friday and the rise to 2.5% is not expected to stop the European Central Bank from easing policy next week.

ECB chief economist Philip Lane told the Financial Times that the central bank is ready to cut interest rates next month, but that monetary policy should remain tight this year as wage growth will not normalize until 2026.

While markets give an 88% chance of an easing, to 3.75%, at the June 6 meeting, German inflation data on Wednesday, along with eurozone data on Friday, will be in focus in case the expected rate cut is confirmed.

"The market expects widespread rebound in May CPIs in Europe in headline rate, showing the difficulty of going 'the last mile' towards the 2% inflation target: Eurozone 2.6%e vs 2.4% previous, Germany 2.4%e vs 2.2%, France 2.4%e vs 2.2% and Spain 3.6%e vs 3.3%," Renta 4 analysts said in a note to clients.

At 0711 GMT Monday, Spain's selective IBEX 35 stock index was up 15.20 points, or 0.14%, to 11,261.20 points, while the FTSE Eurofirst 300 index of large European stocks was down 0.02%.

In the banking sector, Santander rose 0.25%, BBVA gained 0.61%, Caixabank advanced 0.55%, Sabadell gained 1.41%, Bankinter dropped 0.40%, and Unicaja Banco lost 0.37%.

Among the large non-financial stocks, Telefónica fell 0.10%, Inditex dropped 0.41%, Iberdrola gained 0.08%, Cellnex gained 0.24%, and the oil company Repsol rose 0.50%.

(Information by Benjamín Mejías Valencia; edited by Javi West Larrañaga)