Spain's Ibex-35 stock index rallied on Tuesday after upbeat U.S. economic data helped ease recession fears and stoked investors' appetite for risk.

An unexpected rise in orders for U.S. manufactured capital goods, along with strong new home sales figures and consumer confidence, helped calm worries about an impending recession amid the Federal Reserve's efforts to cool demand in order to curb inflation.

Markets also focused on comments from China's Premier Li Qiang, who said Beijing will take measures to boost demand, invigorate markets and promote development.

Also during the day, European Central Bank President Christine Lagarde said that inflation in the euro zone has entered a new phase that could last for some time.

"It is unlikely that in the near future the central bank will be able to state with full confidence that peak rates have been reached," Lagarde said.

Spain's selective Ibex-35 stock market closed up 119.00 points on Tuesday, up 1.28%, to 9,393.00 points, while the FTSE Eurofirst 300 index of large European stocks rose 0.09%.

In the banking sector, Santander rose 3.63%, BBVA added 0.53%, Caixabank advanced 2.59%, Sabadell gained 1.68%, and Bankinter added 0.95%.

Among the large non-financial stocks, Telefónica rose 0.97%, Inditex advanced 1.50%, Iberdrola added 1.11%, Cellnex gained 0.50%, and the oil company Repsol lost 0.19%.

(Information by Benjamín Mejías Valencia; edited by Manuel Farías)