European stock markets today: the IBEX 35 opens down 1.04%

Mixed open in Europe with punishment for the Spanish benchmark: European stock markets today

European stock markets today start on an uneven note, but the key data point is in Madrid: the IBEX 35 is down 1.04% to 18,792.00 points at 09:04 CET. To me, the contrast with an almost flat Europe has a simple reading: this is not a broad sell-off, but a very concentrated hit to heavyweights such as Banco Santander and Telefónica.

Prices as of 09:20 (Madrid time) on 26 October 2026.

The Euro Stoxx 50 is down just 0.02% to 6,066.77 points at 09:05, while the DAX 40 rises 0.26%, the CAC 40 gains 0.47% and Milan’s FTSE MIB advances 0.44%. In contrast, Lisbon’s PSI slips 0.83%. The initial picture, therefore, is not one of Europe turning lower, but rather several markets holding up and two peripheral venues suffering a bit more.

What is moving European stock markets today: central banks and the Brent drop

The open comes with an interesting combination. Asia has closed without a single clear direction: Tokyo’s Nikkei 225 is down 0.80%, while Hong Kong’s Hang Seng has risen 0.54% and Shanghai’s composite index 0.19%. Added to that is Brent at 110.11 dollars, down 1.42% at 09:09 (January contract, now the benchmark), a move enough to ease sectors sensitive to energy costs and, at the same time, hit oil companies such as Repsol.

The calendar also matters. At 10:00, Germany’s Ifo business climate index is released, with a forecast of 90.0 versus 89.9 previously, and the market is also heading into a week with central bank dates that should not be taken lightly: the Federal Reserve announces on Wednesday the 28th at 19:00 and the European Central Bank will do so on Thursday the 29th at 14:15, with the press conference at 14:45. Wall Street futures are offering little conviction: the E-mini S&P 500 is up 0.08%, but the Nasdaq 100 future is down 0.21%.

IBEX 35: Santander and Telefónica explain the initial weakness

The IBEX 35 is opening clearly worse than its peers, and there is no need to force the interpretation. Banco Santander is down 5.46% to 10.88 euros and Telefónica is off 7.08% to 3.1750 euros, two declines enough to distort the index at the open. Repsol is not helping either: it falls 1.09% to 29.14 euros in line with the pullback in Brent.

Against those drags, there is more resilience than the headline suggests. IAG is up 1.29%, ACS gains 1.31%, Solaria advances 1.79% and CaixaBank adds 0.76%. Even Inditex is trading in positive territory, up 0.25%. For me, that reduces the drama of the move: the index is clearly lower, yes, but the weakness is not spread across the entire market.

DAX, CAC 40, FTSE MIB and PSI: Europe is holding up better than Madrid

Frankfurt’s DAX 40 is up 0.26% to 25,246.03 points at 09:05. It is a modest gain, but enough to show that the German market is awaiting the Ifo without any opening shock.

Paris’s CAC 40 improves 0.47% and stands at 7,819.57 points. Milan’s FTSE MIB advances 0.44% to 48,771.77 points, in line with a constructive open in southern Europe. Lisbon’s PSI, however, falls 0.83% to 9,167.52 points, joining Madrid on the weak side of the board. The Euro Stoxx 50, with its slight 0.02% decline, sums up the overall balance quite well: Europe is not breaking down, but neither is it buying into conviction.

Stocks moving the most at the open

Today’s agenda (Madrid time)

• 10:00 – Eurozone: German ifo Business Climate.
• 12:00 – United Kingdom: CBI Realized Sales.
• 14:30 – Wall Street open.
• Before Wall Street open – results from Verizon Communications and Cemex.
• After Wall Street close – results from Cadence Design Systems, Nucor and Welltower, among others.

My take

I would not read this opening as a clean signal on Europe, but rather as a very localized adjustment. When the Euro Stoxx 50 is practically flat and the DAX 40 and CAC 40 open higher, a 1.04% drop in the IBEX 35 says more about its composition than about the market as a whole. The deterioration in Santander, Telefónica and Repsol explains a lot. And Brent falling 1.42% introduces a logical rotation: it hurts energy, helps transport and consumption, and leaves the Spanish index with a peculiar bill.

What would make me change my mind would be a widening of the decline to the rest of Europe after the 10:00 Ifo or a clearly weak Wall Street open at 14:30. If that happens, it would stop being a local heavyweight problem and become something broader. The main risk still lies in monetary policy: the Fed decides on 28 October at 19:00 and the ECB on 29 October at 14:15. In weeks like this, trusting in quick cuts usually ends up being expensive. I prefer to focus on whether the market can hold levels with high rates for longer, not on the first bounce that comes along.

For further reading

• My previous analysis: European stock markets today: the IBEX 35 opens up 0.31%
• Stock market investing guide — basic concepts to make better decisions

This article is general financial information and does not constitute investment advice. Investing involves the risk of losing the invested capital.