The Ibex 35 recorded a slight decline of 0.19% in the mid-session of this Monday, standing at 18,953.56 points, on a day conditioned by the victory of Luiz Inácio Lula da Silva in the Brazilian presidential elections, the publication of corporate results, and the current geopolitical scenario.
In the Spanish market, the electoral outcome in Brazil impacts more strongly on companies with a greater presence in that country, including Telefónica, Banco Santander, and Mapfre.
"After the first round, held in early October, the markets had largely discounted a victory for Bolsonaro; this suggests a significant correction in Brazilian assets and greater volatility, given that doubts persist regarding fiscal policy. The implementation of legislative measures will depend on the ability to form coalitions in a fragmented Congress that is predominantly center-right," explains Julius Baer's fixed income analyst, Eirini Tsekeridou.
In the geopolitical arena, Houthi forces have launched several offensives with ballistic missiles and drones against various targets in Saudi Arabia, including King Khalid International Airport in Riyadh and several oil pumping stations.
The military spokesman for the Houthi rebels, Yahya Sari, stated this Monday in a statement that their armed forces have "successfully" attacked the airfield of the Saudi capital using a ballistic missile that, he claimed, hit its target "accurately."
In this context, the price of Brent crude, a reference for Europe, fell by 1.48% in the mid-session of the stock exchanges of the Old Continent, to 114.99 dollars, while West Texas Intermediate (WTI), a reference in the United States, decreased by 2.04%, to 101.16 dollars per barrel.
On the Spanish business front, before the opening, it was announced that Moeve and the Portuguese Galp have decided to end their discussions to create an "energy giant" in the Iberian Peninsula through the integration of their traditional refining and distribution and sales activities at service stations ("downstream"), ultimately discarding the non-binding agreement they signed last January to study this operation.
At the same time, the National Commission of Markets and Competition (CNMC) has authorized in the first phase the purchase by Iberdrola of the electricity marketing business of Contigo Energía in Spain, which will allow the company to incorporate a portfolio of 100,000 clients.
In the macroeconomic sphere, the National Institute of Statistics (INE) has indicated that the buying and selling of homes increased in August by 3.4% compared to the same month of 2025, reaching 49,319 transactions, the highest level for an August since 2024. It has also detailed that mortgages on homes grew by 2.3%, reaching 33,841 contracts, its highest record in an August month since 2022.
Similarly, the agency has reported that industrial prices increased by 18.3% in September compared to September 2025, 5.1 points above the rate of August and at highs since November 2022, driven by the rising cost of energy.
Regarding the Spanish Stock Exchange, Telefónica led the losses at midday (-7.35%), ahead of Banco Santander (-3.58%), Mapfre (-2.69%), Cellnex (-2.67%) and Repsol (-1.83%). On the opposite side, Indra was at the forefront of the gains (+3.81%), followed by Grifols (+3.44%), IAG (+3.09%) and CaixaBank (+2.32%).
While the Ibex 35 was moving in negative territory, the rest of the major European markets reacted to the electoral result in Brazil with advances: the British FTSE 100 added 0.38%, the French Cac 40 0.69%, the German Dax 0.82%, the Italian FTSE MIB 0.81% and the Euro Stoxx 50 0.40%.
In the debt market, the yield on the Spanish ten-year bond fell to 4.038%, down from 4.047% at Friday's close, while the risk premium — the differential against the German ten-year bond — stood at 69.31 basis points.
In the foreign exchange market, the euro fell by 0.03% against the dollar, trading in the markets at 1.1199 "greenbacks".