IBEX 35, Dax, FTSE 100 Stock Indices Set Records as Central Banks Signal Easing Ahead

Quick overview

Despite a comparatively calm session, the market showed definite direction, with the FTSE, DAX, and Spain’s Ibex setting new European records.

Central Bank Signals Lead Market Direction as European Stocks Rally

The main headline came from the Reserve Bank of Australia, which cut interest rates by 25 basis points, as widely expected. Alongside the decision, the RBA also lowered its forecasts for GDP growth and inflation, reflecting concerns over slowing domestic demand and global uncertainties.

Canadian Inflation Cools

In Canada, the April CPI inflation report was released, pointing to further signs of cooling price pressures. This has helped firm expectations of a potential rate cut by the Bank of Canada in its upcoming June meeting.

Eurozone Confidence Improves
The Eurozone’s May flash consumer confidence index improved to -15.2, rising from -16.6 in April and beating expectations of -16.0. The modest rebound reflects slightly more optimistic sentiment across households despite high borrowing costs and geopolitical tensions.

ECB Officials Grow Cautious

A number of European Central Bank officials delivered remarks hinting at growing divisions over the path of interest rate cuts. While dovish voices are leaning toward more easing, ECB hawks remain wary, warning against lowering rates too quickly and risking failure to keep inflation anchored around the 2% target.

Equity Markets End Strong Across Europe

Despite the light news flow, European equities finished the session on a high note, driven by improved consumer sentiment and central bank clarity. Spain’s IBEX 35 hit an all-time high at 14,262.30, surging +163.30 points (+1.16%), UK’s FTSE 100 followed, also reaching a record close at 8,781.12, up +81.81 points (+0.94%) while Germany’s DAX rose to 24,036.11, gaining +101.13 points (+0.42%).

IBEX 30 Index Chart Daily –  Decent Daily Gains

These moves reflect a widening appetite for risk, as investors begin to price in a gradual global policy easing cycle, while remaining selective amid mixed macroeconomic signals.

European Stock Markets – Daily Closing Summary

• Germany’s DAX (Performance Index)
  Closed at 24,036.11, up +101.13 points (+0.42%)
  → Steady performance as investor sentiment remains cautiously optimistic amid global rate speculation.
• France’s CAC 40
  Ended at 7,942.42, rising +58.79 points (+0.75%)
  → Gains driven by strength in consumer goods and luxury sectors.
• UK’s FTSE 100
  Closed at a record 8,781.12, up +81.81 points (+0.94%)
  → Outperformance led by banking and energy stocks amid stabilizing inflation data.
• Spain’s IBEX 35
  Finished at 14,262.30, climbing +163.30 points (+1.16%)
  → Top performer in Europe today, with solid gains in utilities and tourism-related equities.
• Italy’s FTSE MIB (Total Return Index)
  Ended at 40,522.44, advancing +355.67 points (+0.89%)
  → Broad-based rally as industrials and financials helped lift sentiment.

Conclusion:

Major European indices closed higher across the board, reflecting growing confidence in regional economic resilience and easing global rate concerns. Spain and the UK led the rally, while all markets benefited from sectoral rebounds and improving investor outlooks.

German Dax Stock Index

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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