The Ibex restores confidence

El Ibex, the Spanish stock market index, is showing signs of rebound after closing lower for four of the previous five sessions. The market's renewed confidence is attributed to the temporary truce in oil and debt pressures. The Fed's preferred inflation indicator, the U.S. private consumption deflator for August, will be released at 14:30 local time.

Analysts anticipate the figure, reported on an underlying basis, will match the 3.3% expectation. Despite somewhat moderate oil prices during August, a level similar to the anticipated 3% figure could strengthen expectations of a future interest rate hike by the Fed. The market currently discounts another potential rise to the October meeting.

Fortunately, for investors, the day appears to be a respite from inflationary pressures stemming from oil. Brent crude oil is trading slightly below $103 per barrel, compared to $107 at the start of yesterday's session, as exports from the Middle East show signs of recovery and help ease concerns over supply. The moderation in oil prices has also impacted debt yields, another major source of market pressure due to their recent peak levels over two decades.

The 10-year U.S. Treasury yield remains above the 5.20% threshold, while the German Bund stabilizes around 3.60% and the Spanish 10-year bond hovers at 3.15%. The Spanish stock market is showing improved sentiment, closing higher after four consecutive lower sessions. After dropping for four of the previous five sessions, the Ibex now aims to rebound, targeting the 19,600 point range.

This level would help secure a small positive quarter-end balance, surpassing the 19,471 points mark from June's end. However, this rebound may not be sufficient to prevent further declines in September, as the index closed below 19,974 points, the level it reached at the end of August.