The Spanish Ibex-35 stock index extended its profit-taking on Wednesday, in a session weighed down by the most recent data published in China, which revealed the vulnerability of the services sector in the country, which is in the midst of a technological battle with the United States.

"The advanced cycle data in China continue to point to a further slowdown, (...) reinforcing once again the idea that the economic reopening is weaker than initially expected and that new economic stimuli may be necessary," says Renta 4 in its daily analysis note.

In the euro zone, the day is dominated by the PMI final and composite services indices for June, which according to forecasts could also confirm a slowdown in what has been a consumption-driven economic recovery.

Another key clue to the session will come with the minutes of the US Federal Reserve's June 14 meeting, as markets anticipate the central bank's next moves.

"We expect +25 bp at the next meeting (26-July), with a probability of 85%, although the market only gives a 30% probability to rates of 5.50%-5.75% in Dec-23 (new dot plot), noted Renta 4.

Otherwise, the market awaits the reopening of Wall Street after the 4th of July holiday, as well as the release of the US monthly jobs report on Friday.

In this context, at 07:02 GMT on Wednesday, the selective Spanish stock market index Ibex-35 was down 41.40 points, or 0.43%, at 9,547.00 points, while the FTSE Eurofirst 300 index of large European stocks was down 0.41%.

In the banking sector, Santander lost 0.84%, BBVA fell 0.48%, Caixabank gave up 0.27%, Sabadell fell 1.58%, Bankinter gained 0.10% and Unicaja Banco lost 1.14%.

Among the large non-financial stocks, Telefónica fell 0.05%, Inditex dropped 0.26%, Iberdrola gained 0.12%, Cellnex rose 0.24%, and the oil company Repsol lost 0.57%.

(Information by Flora Gómez, edited by Tomás Cobos).