The Spanish stock index IBEX 35 opened on Friday on a positive note and aims to break the negative streak of the previous three days, but in the accumulated evolution of June it registered a decline of 3%, which would be its worst month since October 2023.

The US consumer deflator - an inflation indicator monitored by the Federal Reserve (Fed) - will be the main reference for the day, which will also mark the end of the quarter marked by the fluctuations in the outlook for monetary policy and political uncertainties.

On the first of these fronts, the short-term focus is on the US price index, also known as the PCE, which, if it beats forecasts, could reinforce expectations of higher Fed interest rates for longer.

Analysts polled by Reuters forecast on average that the underlying index will show an increase of 0.1% month-on-month and 2.6% year-on-year.

Also in Europe, there will be news on inflation, with the provisional consumer price indexes (CPI) for June in Spain, France and Italy. The ECB's monthly report on consumer inflation expectations in the Eurozone will also be released.

On the political front, an opinion poll published on Friday in the daily Les Echos indicates that the French far-right National Rally (RN) party is rising further in the polls and could reach up to 37% of the popular vote, two days before the first round of the parliamentary elections.

The markets were also analyzing the first electoral debate between Joe Biden and Donald Trump, which seemed to increase the Republican candidate's chances of victory in the US elections in November.

The initial reaction of the US markets after the debate showed a rise in stock futures and the dollar, as investors expect that a Trump presidency would mean lower corporate taxes, tougher trade relations and thus higher stock prices and bond yields.

At 0710 GMT on Friday, Spain's selective IBEX 35 stock market index was up 33.20 points, or 0.30%, to 10,984.70 points. The index was on track to close the week down 0.42%, while it was set to end June down 2.97%.

The FTSE Eurofirst 300 index of large European stocks advanced by 0.43%.

In the banking sector, Santander rose 0.59%, BBVA gained 0.78%, Caixabank advanced 0.75%, Sabadell gained 0.34%, Bankinter gained 0.74%, and Unicaja Banco rose 1.98%.

Among the large non-financial stocks, Telefónica gained 0.13%, Inditex advanced 0.32%, Iberdrola dropped 0.21%, Cellnex added 0.1%, and the oil company Repsol rose 1.26%.

(Information by Tomás Cobos; edited by Benjamín Mejías Valencia).