The Ibex 35 held above 19,000 points at midday on Friday as investors waited for US employment data. French borrowing costs, faster euro-area inflation and falling oil prices kept the wider market cautious.
By midday on Friday, the Ibex 35 had reached 19,084 points, up 0.42% from Thursday's close. The index had barely moved from its opening level. Investors were waiting for the September 2026 US employment report and France's 2027 state budget.
France's 10-year bond yield had climbed to 4.9%. That put public finances and borrowing costs at the center of the session. Events around the Middle East added another risk, with markets still watching efforts to reopen the Strait of Hormuz.
France’s preliminary harmonised inflation rate rose to 3.4% in September from 2.6% in August, adding to the market’s focus on French public finances and the 2027 budget.
Brent crude fell 3.04% to 99.20 dollars per barrel during the European session. West Texas Intermediate dropped 4.08% to 89.08 dollars. Oil prices moved lower even as traders focused on inflation and government borrowing costs.
Market reports linked the swings in oil prices to risks around the Middle East and the Strait of Hormuz. The energy market remains uneasy.
Spain's latest figures added a mixed signal. Registered unemployment rose by 23,587 people in September 2026, according to the Ministerio de Trabajo y Economía Social. That was a 1% monthly increase.
The number of registered unemployed reached about 2.38 million. It was still Spain's best September result for this measure since 2007.
The increase in registered unemployment still left Spain with its best September result for this measure since 2007. Meanwhile, annual employment growth reached 3.41%, with reporting on the figures pointing to the regularisation of migrants and the expansion of formal employment as important drivers.
The Ministerio de Inclusión, Seguridad Social y Migraciones reported a rise of 92,327 workers in average Social Security membership. The total reached 22,437,553, an increase of 0.41%.
Annual employment growth reached 3.41%. The increase was stronger than expected. Reporting on the figures linked much of the gain to the regularisation of migrants and the growth of formal employment.
The Spanish data point in two directions. Unemployment rose during the month, but the Social Security system added workers. Average employment moved above 22.4 million.
Across the euro area, annual inflation reached 3.8% in September 2026, according to Eurostat's flash estimate. The rate was 3.2% in August.
That puts faster price growth beside a 4.9% French 10-year bond yield and the planned 2027 budget. The issue is wider than the next US jobs report. European traders are weighing inflation, debt costs and France's fiscal plans at the same time.
ACS led the Ibex 35 with a 3.37% gain. Aena rose 2.39%, Ferrovial added 2.26%, Cellnex gained 2.03% and Indra advanced 1.75%.
Repsol posted the biggest decline at 1.48%. Banco Sabadell fell 1.42%, CaixaBank lost 1.25%, Unicaja dropped 0.88% and BBVA slipped 0.84%.
Other European markets also moved higher. The FTSE 100 rose 0.28%, the Cac 40 added 0.66% and the Dax gained 0.90%. The FTSE MIB climbed 0.47%, while the Euro Stoxx 50 advanced 0.82%.
Madrid was not moving alone. The gains covered much of the region.
Spain's 10-year sovereign yield eased to 4.093% from 4.135% at Thursday's close. The risk premium against the German bond widened to 67.4 basis points.
The euro edged up 0.05% against the dollar to 1.1250. An earlier Euribor report also examined the link between borrowing costs and market sentiment.
French 10-year yields are also under close watch. Market coverage has described the latest level as the highest since 2002. Paris is preparing its 2027 budget and plans spending reductions of approximately 54 billion euros.
That leaves the bond market as an added risk for European equities. France's budget plans now matter alongside the inflation figures.
The Ibex 35 is above 19,000 points. The move remains limited.
Falling oil prices, higher French borrowing costs and faster euro-area inflation are all shaping the session. Investors are still waiting for the US employment data.
For Spain, the message is mixed. Domestic employment figures offer some support, while international rates, energy prices and geopolitical risks leave the index exposed to the next market signal.
