The IBEX 35 opened Friday with a slight uptick, reaching new all-time highs in a session that could mark its tenth consecutive day of gains--the longest winning streak since the ten sessions between August 4 and 15.

The prevailing mood is shaped by optimism over an imminent rate cut in the United States and anticipation of key data releases, including the Personal Consumption Expenditures (PCE) deflator expected today, along with several reports still delayed by the recent U.S. government shutdown.

Markets are pricing in a 25 basis point reduction when the Federal Open Market Committee (FOMC) meets on December 9 and 10, with attention focused on any hints regarding the extent of subsequent monetary easing.

According to LSEG's IRPR money futures tool, investors now assign an 86% probability to monetary easing next week. The market is also closely watching the selection of the next Federal Reserve (Fed) chair, who is likely to favor cheaper borrowing costs compared to the current chair, Jerome Powell.

U.S. economic cycle readings continue to be affected by statistical delays. On Friday, the PCE--the Fed's preferred inflation gauge--will be published, but the monthly employment report will not be released this Friday. On Thursday, weekly jobless claims fell significantly, easing fears of a sharp downturn in the labor market, although the figure may have been distorted by the Thanksgiving holiday.

Analysts at Renta 4 note that for the PCE, "expectations point to a slight moderation in September (2.8%e vs 2.9% previously), which, if confirmed, would reinforce expectations that the Fed will cut rates by 25 basis points next Wednesday, December 10 (90% probability), marking its third cut of the year, even as employment data remains mixed (a weak ADP reading was followed by much better-than-expected weekly jobless numbers, the best since 2022)."

Renta 4 analysts also highlight today's vote (12:30-13:00) in the Bundestag on a pension law that Chancellor Merz "may struggle to pass" due to a revolt among younger members of his own conservative party.

"If the law fails to pass, or even if it passes with opposition support, it could generate uncertainty over the stability of the German government, just seven months after its formation, and raise the possibility of new elections," these analysts add.

Against this backdrop, as of 08:15 GMT on Friday, Spain's IBEX 35 benchmark index was up 53.00 points, or 0.32%, at 16,799.60 points, while the pan-European FTSE Eurofirst 300 index rose 0.19%.

In the banking sector, Santander gained 1.08%, BBVA added 0.37%, Caixabank advanced 0.50%, Sabadell climbed 1.25%, Bankinter rose 0.81%, and Unicaja Banco was up 0.99%.

Among major non-financial stocks, Telefónica rose 0.93%, Inditex slipped 0.40%, Iberdrola fell 0.14%, Cellnex dropped 0.39%, and oil company Repsol lost 0.61%.

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