The Spanish stock index IBEX 35 showed a slight rebound on Wednesday in a market devoid of arguments to prolong the recent bullish streak, with investors' attention on macroeconomic and international political news.

Hopes about the rate cuts that could be applied this year by the European Central Bank (ECB) and the US Federal Reserve (Fed) fueled a 10.7% advance in the IBEX in March. However, in recent days there has been renewed concern in this regard, in view of signs of strength in the economy that could imply greater resistance to further price moderation.

The day will bring an important test in this sense, with the publication of the Eurozone's consumer price index for March, which could show an increase of 2.6% in March, a level that would highlight the difficulties faced by central banks.

"(Expected inflation in the eurozone reflects) inflation levels that resist further substantial moderation towards the 2% target and show acceleration on a monthly basis," said the Renta 4 brokerage.

"Even so, the most important data for the ECB will be the 1Q24 wage data to be published on May 23, with expected moderation from elevated levels which, if confirmed, should allow for a first rate cut on June 6 (current probability 84%)," said these analysts, who foresee 4 rate cuts this year by the ECB.

As for the US rate outlook, the main references will be, on Tuesday, the ISM services sector survey and the ADP private job creation survey, while economists await the full labor market report to be released on Friday.

Renta 4 also warns of the importance that the evolution of oil prices will have on central banks' decisions, in a market awaiting the OPEC+ meeting -with no changes expected, in principle-, in a climate of fear of an international escalation of the war in Gaza, after the Israeli attack on the Iranian embassy in Syria.

After falling 0.9% the day before, at 0705 GMT on Wednesday, the Spanish selective stock market IBEX 35 was up 14.50 points, or 0.13%, to 10,990.10 points, while the FTSE Eurofirst 300 index of large European stocks was up 0.06%.

In the banking sector, Santander rose 0.75%, BBVA gained 0.73%, Caixabank advanced 0.24%, Sabadell gained 0.82%, Bankinter gained 0.32%, and Unicaja Banco added 0.44%.

Among the large non-financial stocks, Telefónica gained 0.29%, Inditex advanced 0.11%, Iberdrola dropped 0.13%, Cellnex fell 0.44%, and the oil company Repsol rose 0.19%.

(Information by Tomás Cobos; edited by Mireia Merino)