IBEX 35 Falls 2.17% to 3-Month Low as Banks Lead Sell-Off

Spain's benchmark stock index, the IBEX 35, fell sharply on Thursday, closing down 2.17% to reach its lowest point in three months amid a broad-based market sell-off.

Widespread Losses in Madrid

The decline at the close in Madrid was comprehensive, reflecting broad negative sentiment among investors. According to data from Investing.com, falling stocks significantly outnumbered advancing ones on the Madrid Stock Exchange by a margin of 149 to 43, with 14 issues ending the session unchanged.

The sell-off was driven by weakness across several key sectors, including Financial Services & Real Estate, Consumer Services, and Consumer Goods.

Financials and Industrials Drag Index Lower

Spain's banking sector was particularly hard-hit, with two major lenders ranking among the day's biggest decliners. Key stock movements included:

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• Caixabank SA (BME:CABK), which fell 4.60%.
• ArcelorMittal SA (BME:MTS), which declined 4.38%.
• Banco Santander (BME:SAN), which was down 4.19%.

A few companies managed to post gains against the negative trend. The top performers on the index were technology firm Indra A (BME:IDR), which rose 1.97%, and construction group ACS (BME:ACS), which added 0.88%.

Market Context

The drop in Spanish equities occurred as the euro weakened against the U.S. dollar. The EUR/USD pair was down 0.84%, while the U.S. Dollar Index Futures rose 0.64%, indicating broad strength in the dollar.

In commodity markets, energy and precious metals saw gains. Brent oil for December delivery rose 3.27% to trade at $101.24 a barrel, while Gold Futures for December were up 0.45%.