The Ibex-35 extended on Friday the timid rebound of the previous day, aiming to settle above the psychological level of 9,900 points before attacking new heights, although the rise was limited by the cooling of hopes of early interest rate cuts and international political tensions.

Despite the hint of recovery in equities, the weekly trend is clearly negative, with the biggest fall in three weeks, and Bankinter analysts highlighted the "lack of catalysts capable of changing the tone of the stock markets".

"It is the readjustment of expectations of rate cuts that we have been warning about since the end of last year. Our outlook for 2024 is favorable for stocks and bonds and that has not changed. It's just a matter of time," they said.

"With no relevant corporate results, attention will shift to next week, full of relevant references that could give some more direction," they added.

In recent days, there has been a succession of interventions from the heads of major central banks indicating that market expectations of a rapid change in the monetary cycle with rapid interest rate cuts were exaggerated.

This cold water has lifted yields on fixed income and punished equity prices, a trend contributed to by the risks of the war between Israel and Gaza spreading beyond its borders, especially after the recent skirmishes between Pakistan and Iran, in addition to the confrontation between the Houthis in Yemen and the United States and the United Kingdom in the Red Sea.

There will be few major macroeconomic releases during the day. At 1500 GMT, the University of Michigan consumer confidence index will be released, for which a level of 70.0 is expected in January, up from 69.7 in the previous month.

Against this backdrop, at 0815 GMT on Friday, Spain's selective Ibex-35 stock market index was up 36.20 points, or 0.37%, to 9,916.50 points, while the FTSE Eurofirst 300 index of large European stocks was up 0.51%.

For the week as a whole, the Ibex-35 shows a decline of 1.8%, the biggest drop since the week ended October 20.

In the banking sector, Santander rose 0.59%, BBVA gained 0.42%, Caixabank advanced 0.57%, Sabadell gained 0.57%, Bankinter gained 0.68%, and Unicaja Banco lost 1.58%.

Among the large non-financial stocks, Telefónica gained 0.96%, Inditex advanced 0.93%, Iberdrola dropped 0.40%, Cellnex fell 0.06%, and the oil company Repsol rose 0.38%.

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