The Spanish IBEX 35 stock index fell 1% on Thursday following sharp declines on Wall Street, where the results of several technology companies did not sit well.

This was compounded by a disappointing PMI business survey in the United States, according to analysts at the Renta 4 brokerage firm, who in any case point to a logical profit-taking as the underlying reason for the decline.

"The correction in the markets can simply be blamed on profit-taking in some indices (of the New York Stock Exchange) which, after yesterday's trading day, remain practically flat in July and with gains of close to 15% in 2024 as a whole."

On Thursday, markets will turn their attention to new data on economic activity in the eurozone and the U.S. that could provide clues on the future of interest rates.

In this regard, the IFO confidence index (0800 GMT) and the US second-quarter GDP advance (1230 GMT) will be of note. However, the highlight of the week is likely to be the US consumer deflator or PCE - the Fed's favorite measure of inflation - which will be released on Friday.

Against this backdrop, at 0705 GMT on Thursday, the selective Spanish stock market index IBEX 35 fell 113.50 points, or 1.01%, to 11,096.60 points, while the FTSE Eurofirst 300 index of large European stocks fell 0.98%.

In the banking sector, Santander lost 1.33%, BBVA fell 1.31%, Caixabank gave up 0.61%, Sabadell fell 1.04%, Bankinter dropped 0.71% and Unicaja Banco lost 0.81%.

Among the large non-financial stocks, Telefónica fell 0.46%, Inditex dropped 1.51%, Iberdrola gained 0.38%, Cellnex fell 1.51%, and the oil company Repsol lost 1.28%.

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