Spanish Ibex 35 Surges on Banking Sector Gains Following ECB Rate Hike

The Spanish stock market's main index, Ibex 35, surged to 19,799.90 points by midday on Friday, a gain of 0.71%.

This boost was largely driven by the banking sector, which led gains following the European Central Bank's (ECB) decision to raise interest rates by 25 basis points on Thursday.

Julius Baer's chief economist, David Kohl, stated that although markets anticipate further monetary tightening, the moderation of core inflation should reduce the need for additional rate hikes. He continued to expect interest rates to remain unchanged from now on, but noted a risk of another increase at the December meeting.