Spain's Main Stock Index Rises to Record High

Spain's main stock index, the IBEX 35, rose to a record high on Tuesday, boosted by gains in banking and energy stocks.

The index closed at 9,404.60 points, up 1.2% on the day and 10% so far this year. The previous record high was set in February 2020, before the COVID-19 pandemic hit.

The rise in the IBEX 35 was led by banking stocks, with Banco Santander and BBVA both gaining more than 2%. Energy stocks also performed well, with Repsol and Iberdrola both rising more than 1%.

The rally in the IBEX 35 comes as investors become more optimistic about the Spanish economy. The country's economy is expected to grow by 4.5% this year, according to the International Monetary Fund. This is higher than the eurozone average of 4.0%.

The rise in the IBEX 35 is also being driven by expectations that the European Central Bank will raise interest rates later this year. This is expected to benefit banks, which will be able to charge higher interest rates on loans.

However, there are some risks to the rally in the IBEX 35. The war in Ukraine is continuing to weigh on investor sentiment, and there are concerns that the conflict could escalate. Additionally, the rising cost of living is putting pressure on consumers and businesses.

Overall, the rally in the IBEX 35 is a sign of confidence in the Spanish economy. However, there are some risks that could derail the rally, and investors should be aware of these risks before investing.