FX.co ★ IBEX 35 Posts Stellar Gains in 2025

Spain's IBEX 35 index approached record levels around 17,315 during the final trading session of 2025, poised to conclude the year with an impressive nearly 50% gain—a feat unmatched since 1993. This positions the IBEX 35 as Europe's leading major market in terms of performance, bolstered by a positive earnings outlook. The banking sector largely fueled this surge, contributing nearly 70% of the index's gains through robust earnings, appealing dividends, improved economic prospects, and sector consolidation. Additionally, the market gained traction from the strong performance of European defense stocks, aligned with Europe’s intensified rearmament efforts in response to the continuing and escalating conflict between Russia and Ukraine. Spanish equities further enjoyed advantages from their minimal exposure to US markets and tariffs. This, coupled with strong economic fundamentals such as low unemployment and modest inflation rates, led to credit rating upgrades, enhancing investor confidence.