Spain's IBEX 35 slips 0.05% to close lower

Spain's IBEX 35 index declined 0.05% on Tuesday, closing at 11,200.12 points after a session marked by cautious trading. The index, which tracks the performance of the 35 most liquid and capitalized stocks on the Madrid Stock Exchange, followed broader European equities lower amid a lack of fresh macroeconomic catalysts.

Regional economic data released earlier in the day showed Spain's industrial production contracted by 0.3% year-on-year in February, missing expectations of a 0.2% expansion. The decline, attributed to weaker manufacturing output, weighed on investor sentiment. However, the impact was tempered by a modest rebound in services sector activity, which rose 0.1% month-on-month.

Sectoral performance was mixed, with utilities and telecommunications stocks leading declines, while financials and consumer staples provided marginal support. Banco Santander and Inditex were among the top drags, each falling more than 0.7%, while Iberdrola and Repsol saw modest gains of around 0.3%.

Trading volumes were below the 30-day average, reflecting subdued market participation. The euro held steady against the dollar, trading at $1.0850, as investors awaited further cues from the European Central Bank's policy meeting scheduled for Thursday.

The IBEX 35's modest decline mirrored broader European benchmarks, with the Euro Stoxx 50 and Germany's DAX also finishing lower by similar margins. Analysts attributed the lack of directional momentum to a wait-and-see approach ahead of key earnings reports due later this week, including those from major Spanish banks and energy firms.