The Ibex 35 falls 1.04% in mid-session trading. Rising oil prices and bond yields add pressure across European markets as investors await the Fed minutes.
At the opening on October 7, the Spanish benchmark fell 0.68% to 19,312.5 points. It slipped below 19,400 for the first time during the session as investors cut risk across Europe.
Milan and Paris each lost about 0.6%, Frankfurt declined 0.8% and London slipped 0.4%, according to a market report by Democrata. Crude prices, higher bond yields and tensions in the Middle East all added pressure.
The broad European STOXX 600 index lost about 0.45% as the euro weakened alongside the equity-market sell-off, according to Reuters.
By mid-session, the Ibex 35 had deepened its fall to 1.17%, reaching 19,216.5 points. The weakness was not limited to Spain. London was down 0.40%, Paris 0.88%, Frankfurt 1.10% and Milan 1.41% by midday.
Financial and industrial shares took the heaviest hit in Madrid. ArcelorMittal dropped 3.06%. CaixaBank fell 2.55%, Bankinter 2.53%, Santander 2.33% and BBVA 2.31%.
The losses pointed to investor concerns about financing costs and the effect of more expensive energy on economic growth. Banks and steel stocks faced the strongest selling pressure.
A separate XTB market review estimated intraday losses of about 1.7% for the Euro Stoxx 50, 1.3% for the DAX, 1.8% for the Ibex 35 and 2.5% for the FTSE MIB, highlighting the breadth of the European sell-off.
Some Spanish stocks held up. Rovi gained 1.55%, Acciona rose 0.95%, Telefónica advanced 0.86% and Inditex added 0.71%. Their gains helped limit the decline in parts of the index, even as banks and steel shares moved lower.
Oil remained the main market concern. Reuters reported that crude moved above 100 dollars a barrel after tensions in the Middle East revived fears of an energy shock.
More expensive oil can add to inflation and reduce expectations for easier interest rates. That put fresh pressure on shares, which were already sensitive to moves in the bond market.
Higher bond yields, fiscal concerns and a weaker euro piled on. Reuters tied the broader fall in European sentiment to the mix of rising oil prices, renewed regional tensions and worries about public finances.
Investors were also waiting for the Federal Reserve minutes. The document could offer new clues about the path for interest rates.
Infrastructure, telecommunications and selected retail shares showed some resilience. Still, losses in banking and metallurgy kept the Ibex 35 under pressure through the session.
