The IBEX 35 opened higher on Tuesday, buoyed by the extension of the trade truce between the United States and China, as markets await a crucial US inflation report. The world’s two largest economies agreed on Monday to extend their trade negotiation period by another 90 days, averting mutual tariffs that could have exceeded 100% in some cases. While the move had been partly priced in by markets, it provided an extra boost to equities, bringing the IBEX 35 within 100 points of the psychological 15,000 mark—a level it has not surpassed since January 2008. If the index closes in positive territory, it would mark a seventh consecutive session of gains. However, much will depend on the monthly US Consumer Price Index (CPI) data, scheduled for release at 1230 GMT. If the inflation figure comes in higher than expected, it could dampen hopes for Federal Reserve (Fed) interest rate cuts in the coming months. Analysts forecast headline CPI to rise 0.2% month-on-month and 2.8% year-on-year, while core indicators (excluding energy and fresh food due to their high volatility) are expected to increase by 0.3% and 3.0%, respectively. After the recent rally in equities, some market watchers warn that excessive optimism could face a sharp reality check at some point in August. Bankinter analysts highlighted in their Telegram channel that "a BofA survey shows that 91% of surveyed fund managers (169 with a combined AUM of $413 billion) believe the US stock market is overvalued. In other words, new stimuli must justify these valuations, or both equities and bonds could face a correction." Elsewhere, financial markets are looking ahead to the upcoming summit between Russia and the United States on Friday, where the war in Ukraine will be addressed. Against this backdrop, at 07:05 GMT on Tuesday, Spain’s IBEX 35 index was up 43.90 points, or 0.30%, at 14,899.80, while the pan-European blue-chip FTSE Eurofirst 300 rose 0.34%. In the banking sector, Santander gained 0.20%, BBVA slipped 0.19%, Caixabank advanced 0.42%, Sabadell rose 1.35%, Bankinter edged down 0.12%, and Unicaja Banco was up 0.33%. Among major non-financial stocks, Telefónica added 0.06%, Inditex climbed 0.43%, Iberdrola gained 0.26%, Cellnex rose 0.53%, and oil group Repsol advanced 1.25%. (Reporting by Tomás Cobos)

IBEX Edges Closer to 15,000 Points on US-China Trade Truce

The IBEX 35 index rose on Tuesday, approaching the 15,000-point psychological level due to the extension of the US-China trade truce, which delays potential mutual tariffs exceeding 100%. Markets are now awaiting the US Consumer Price Index (CPI) report, with analysts forecasting a 0.2% month-on-month increase and 2.8% year-on-year rise in headline CPI, and a 0.3% month-on-month and 3.0% year-on-year rise in core CPI. A higher-than-expected inflation reading could hinder expectations of Federal Reserve interest rate cuts. Bankinter analysts noted that 91% of surveyed fund managers believe the US stock market is overvalued, warning of potential market corrections. Financial markets also look ahead to a US-Russia summit on Friday, where the war in Ukraine will be discussed. The IBEX 35 closed at 14,899.80, up 43.90 points or 0.30%, with gains across major Spanish banks and non-financial companies such as Telefónica, Inditex, Iberdrola, Cellnex, and Repsol.