The IBEX 35 recorded a cautious advance in the early stages of Monday, at the start of a week marked by economic indicators that could determine the course of monetary policy in the major powers.

The first milestone will come on Monday, with the IFO business confidence survey in Germany (0800 GMT), which will be followed in the coming days by other important indicators such as the Conference Board's consumer confidence in the United States (Tuesday), economic confidence in the Eurozone (Thursday), or the price indices of several European countries (Friday).

But the main course will be served on Friday, with the publication of the personal consumption deflator, a data of utmost importance for the US Federal Reserve when assessing the inflation trend.

"After the S&P 500 and Nasdaq in the United States last week returned to record highs, it cannot be ruled out that it could happen again if the data, both personal consumption and underlying deflator to be known, support the idea that the Fed can lower rates further, taking into account that the 'dot plot' points to a single decrease in 2024 compared to two that the market is discounting," said analysts at Renta 4.

The dot plot is a document that reflects where Fed members (anonymously) expect interest rates to be in the coming years.

Given this scenario, movements in equities are likely to be limited, with the end of the second quarter in sight.

At 07:15 GMT on Monday, the selective Spanish stock market index IBEX 35 was up 49.70 points, or 0.45%, to 11,082.00 points, while the FTSE Eurofirst 300 index of large European stocks was up 0.04%.

In the banking sector, Santander rose 0.58%, BBVA gained 1.20%, Caixabank advanced 0.73%, Sabadell gained 1.02%, Bankinter dropped 0.63%, and Unicaja Banco rose 1.20%.

Among the large non-financial stocks, Telefónica fell 0.51%, Inditex advanced 0.38%, Iberdrola gained 0.41%, Cellnex gained 1.13%, and the oil company Repsol lost 0.10%.

(Information by Tomás Cobos; edited by Mireia Merino)