Ibex 35 closes above 19,850 points for a second straight record, lifted by steel tariffs and easing US-Iran tensions
Spanish stocks extended their rally on Friday, with the Ibex 35 closing at 19,852.40 points amid lower oil prices and a new EU steel tariff, while other European indices also hit all-time highs.
Record-setting close
On Friday the Ibex 35 rose 0.92% to 19,852.40 points, a second consecutive all-time high. The index gained 2.19% over the week and has climbed 14.7% since the start of 2026. Trading volumes were healthy despite the closure of Wall Street for the US Independence Day holiday. European markets were buoyed by stronger-than-expected service PMIs and a rebound in French industrial production.
Steelmakers surge after EU tariff
Steel companies ArcelorMittal and Acerinox led the gains, up 6.05% and 3.23% respectively. A new 50% EU tariff on steel imports from the rest of the world took effect on 1 July, favouring domestic producers. ArcelorMittal generates roughly 55% of its production within Europe, giving it a stronger shield than less regionally concentrated rivals. Merlin Properties and Acciona Energía also recorded notable advances.
Unlike the United States, which is heavily exposed to big tech, Spain is attracting capital into sectors like banking and infrastructure.
Geopolitics and oil prices
Brent crude traded around $71–72 per barrel, down from levels seen earlier in the year. Investors credited a memorandum of understanding signed by the US and Iran on 18 June as progress toward stabilising the Middle East. President Trump said Iran had accepted “virtually everything” the US needed. Iran’s foreign minister Abbas Araqchi discussed the negotiations with UN Secretary-General António Guterres on Thursday.
I think they’ve accepted practically everything we need.
Bankinter analysts noted that the geopolitical risk premium had decreased, making further central bank tightening less probable. The weaker-than-expected US jobs report a day earlier also cooled expectations of Federal Reserve rate hikes, boosting gold and silver prices.
- US and Iran sign memorandum of understanding to cease hostilities
- EU imposes 50% tariff on steel imports from outside the bloc
- US jobs report misses expectations, cooling Fed rate hike outlook
- Ibex 35 closes at 19,852.40 points, a new all-time high
Broad European rally
Frankfurt’s DAX advanced 0.78% to 25,779.31 points, while the pan-European Stoxx 50 and Stoxx 600 added 0.82% and 0.68%, respectively, all reaching records. Milan rose 0.75%, Paris 0.39%, and London 0.25%. In Asia, South Korea’s Kospi jumped 5%, providing an additional tailwind.
- Ibex 35
- 0.92 %
- DAX
- 0.78 %
- Euro Stoxx 50
- 0.82 %
- FTSE MIB
- 0.75 %
- CAC 40
- 0.39 %
- FTSE 100
- 0.25 %
- Stoxx 600
- 0.68 %
Banking outlook clouded by ECB rate hike
Banks have been the Ibex’s main engine in 2026, with combined first-quarter profits exceeding 10,815 million euros. The ECB raised rates in June to fight inflation that has been driven not by excess demand but by higher oil import costs caused by the Middle East situation. XTB analyst Manuel Pinto warned that monetary tightening could reduce consumption and investment without addressing the underlying problem.
This tightening of monetary policy can have a much higher cost, as it will reduce consumption and investment without solving the origin of the problem.
With earnings season approaching, markets will test whether heavy AI investments translate into higher margins and revenues.
