The company, well-positioned as a booming economy, supported the Spanish stock market, which became one of Europe’s best performances this year. Spanish benchmark IBEX 35 has won around 30% since its launch in 2025, surpassing many of its post-European peers. IBEX YTD LINE IBEX 35-year prices are shoring up elsewhere on the continent, with German DAX indexes (which have so far increased by more than 20% this year) being strengthened by optimism about Berlin’s “Fiscal Bazooka,” where huge investments in infrastructure and defense are made. However, the index still follows behind the Spanish counterpart. IBEX 35’s profits from the start of the year are far ahead of what you’ll see among Wall Street’s key indicators. Meanwhile, Spain’s IBEX Small Cap Index has grown by 22% so far this year, while the Madrid General Index has risen by 30%. Like Germany, Spain has benefited from economic optimism this year. The Spanish economy grew by 0.7% ahead of its forecast in the second quarter, and is expected to be one of the European Union’s most performant economies in 2025 and 2026, with a growth of 2.6% this year and a 2% increase next year. “Spain’s economic success is driven (in partially by large immigration (mainly from Latin America), leading to significant growth in domestic consumption and subsequently corporate income,” Arturo Bris, professor of geopolitics and finance at IMD Business School, told CNBC in an email. “The country has attracted many foreign capital driven by two forces. One is the growth of the strength of the euro. The second… political stability and predictability.” Further ahead? Anthony Esposito, founder and CEO of U.S.-based asset manager Ascalonvi Capital, told CNBC that he “is not a stock market fan at the moment,” claiming that investors are not pricing risks resulting from a variety of factors, including debt levels, inflation and labor market risk. However, he acknowledged that in Spain there are several “persuasive” factors and several “persuasive” factors in play. “If you’re putting money in a developed market, Spain makes sense,” he said. “Spain has bright spots in finance, utilities and renewable energy. It is a sector that shows stronger growth potential than many other Western European economies.” Esposito also pointed to the subsequent prices and rate of return on the Spanish stock market. He said he is now 12 years old compared to Germany and France, who are nearly 20 years old. Considering the Spanish benchmark index against Germany, which is the focus of the 2025 European “revival” trend and focuses on record highs this year, Esposito said: “The Ibex chart shows that there is more room for integration and higher potential,” he elaborated. In addition to the strong economy and increased foreign investment, IMD’s Bri said the composition of the Spanish stock market, consisting primarily of service exporters and domestically focused companies, helped to unravel the sentiment. Service exporters are protected from the full forces of President Donald Trump’s tariff system, which targets goods, but companies that benefit from domestic trade will be spared the full blown of the 15% tariff on EU goods. “The Spanish stock market includes services exporters with businesses in the EU and beyond,” Bliss pointed to lenders BBVA and Santander, the infrastructure companies Ferovia and electricity giant Ibadrora, as examples. Each of these companies has earned significant profits this year. In a note earlier this month, the strategist at Swiss investment bank UBS gave various European markets, sectors and businesses “revolving” scores based on the economic regime, revenue, valuation and sentiment. Ranking six major regional indices against these criteria meant that Spain’s IBEX came in second, slightly missing the top spot held by Italian FTSE MIB. Meanwhile, Spanish companies account for one in five of UBS’s 20 highest rated European stocks in the REVS rankings. They were utility company Naturgy Energy Group, infrastructure giant Acciona, airport operator Aena, and Lender Banker. However, of these, only Anna is given a “buy” rating by the bank, with the rest not neutral or inferior. – Gaelle Legrand of CNBC contributed to this report.
