The IBEX 35 opened lower on Monday, as investors took profits following five consecutive months of gains and a 3.5% advance last week, while the market awaits fresh developments regarding the U.S. economy and interest rates.

The session began with a degree of risk aversion, although the move was largely attributed to a technical correction. After a strong rally in equities in November--when the market set aside fears of an AI bubble--traders are now searching for new catalysts to extend the momentum, with this week's focus on macroeconomic indicators.

Optimism over potential rate cuts in the United States remains the main driving force, as a key month for monetary policy expectations gets underway. It could bring the Federal Reserve's (Fed) final rate cut of the year, as well as confirmation of a dovish successor to Chair Jerome Powell.

According to LSEG's IRPR money futures tool, the market is currently pricing in a 92% probability of a 25 basis point cut at next week's meeting.

The sharp reassessment of Fed easing expectations, along with reports naming White House economic adviser Kevin Hassett as the frontrunner to lead the institution, continued to provide support for the markets.

On the economic data front, the Personal Consumption Expenditures (PCE) deflator--the Fed's preferred inflation gauge--will be published on Friday. Meanwhile, the U.S. November jobs report will be released on December 16, after this month's monetary policy meeting, and will include October figures. No unemployment rate for that month will be available, as the longest government shutdown in history prevented the household survey from being conducted.

In the background, the market is also closely monitoring expectations of a peace agreement between Russia and Ukraine. U.S. Secretary of State Marco Rubio noted progress following talks in Florida with Ukraine, though further work is needed to finalize a deal.

Additionally, November manufacturing PMIs will be published on both sides of the Atlantic: a Reuters poll anticipates the index will hold steady at its October level in the eurozone and rebound in the United States.

The day will also be marked by a return to normal trading on Wall Street, which was closed on Thursday for Thanksgiving and operated a half-session on Friday.

"We're facing a lukewarm few days, with the market adopting a cautious and wait-and-see attitude until we get past the Fed on the 10th and (U.S. tech company) Broadcom's results on the 11th. From that point, the tone is likely to improve as a general repositioning for 2026 takes hold," analysts at Bankinter commented on their Telegram channel.

As of 0815 GMT on Monday, Spain's IBEX 35 benchmark stock index was down 12.30 points, or 0.08%, at 16,359.30 points, while the pan-European blue-chip index FTSE Eurofirst 300 slipped 0.28%.

In the banking sector, Santander lost 0.02%, BBVA added 0.40%, Caixabank was down 0.12%, Sabadell rose 0.38%, and Bankinter gained 0.11%.

Among major non-financial stocks, Telefónica fell 0.16%, Inditex dropped 0.21%, Iberdrola edged up 0.03%, Cellnex declined 0.81%, and oil company Repsol climbed 1.03%.

(Reporting by Tomás Cobos; editing by Benjamín Mejías Valencia)