The IBEX 35 opened flat on Tuesday as investors awaited the minutes of the US Federal Reserve's latest monetary policy meeting to gauge the timing and extent of possible interest rate cuts this year.

With little economic data on the US calendar this week, investors' attention is being focused on a series of Fed speakers looking for clues on the US rate outlook and how soon an easing cycle could begin.

Several policymakers on Monday called for continued caution on monetary policy, even after last week's data showed an easing of consumer price pressures in April.

The minutes of the Fed's latest meeting, scheduled for Wednesday, could provide valuable information on the future path of monetary policy, although the deliberations predate last week's softer CPI reading.

Markets currently expect Fed rate cuts of about 41 basis points this year, with a quarter-point cut fully discounted for November.

On a day with no major macroeconomic releases on this side of the Atlantic, investors will focus their attention on the release of the eurozone's March trade balance (0900 GMT).

At 0705 GMT on Tuesday, Spain's selective IBEX 35 stock market index was down 18.50 points, or 0.16%, to 11,321.00 points, while the FTSE Eurofirst 300 index of large European stocks was down 0.24%.

In the banking sector, Santander lost 0.56%, BBVA gained 0.04%, Caixabank gave up 0.16%, Sabadell gained 0.32% and Bankinter lost 0.28%.

Among the large non-financial stocks, Inditex gave up 0.05%, Iberdrola dropped 0.65%, Cellnex gained 0.34%, and the oil company Repsol rose 0.10%.

Telefónica gained 1.05%, after a digital media reported that the Spanish group Criteria plans to increase its stake in Telefónica to 10%, thus matching the stake recently acquired in the telecommunications company by the Sociedad Estatal de Participaciones Industriales (SEPI).

(Information by Benjamín Mejías Valencia; edited by Mireia Merino)