After the sharp decline of the previous day due to Donald Trump's resounding victory, the Spanish stock index IBEX 35 rose slightly on Thursday, still in the midst of an election hangover, while awaiting the monetary decision of the Federal Reserve (Fed) and other central banks.

Trump's re-conquest of the White House has shaken European markets, which are predicting limited growth due to the president-elect's proposed tariff measures that, if implemented, could ignite a global trade war and harm the European Union.

Bankinter analysts pointed out on their Telegram channel that the concern in Europe about the possible imposition of tariffs from the United States affects "especially (the) Spanish banks with a presence in Mexico, which contaminate the rest without objective reason".

These fears took their toll on Wednesday on the entire listed Spanish financial sector, especially BBVA, which fell 6.6% due to its high exposure to Mexico. On Thursday, the bank's shares experienced a rebound of 2.6%.

Although uncertainty about the measures that Trump will finally implement is expected to persist until he assumes the presidency in January, caution prevailed for the time being, since the Republican leader has defended measures throughout the election campaign that could put more upward pressure on inflation and limit the process of easing interest rates in the United States.

On the other hand, the outlook could be more encouraging for banks on the other side of the Atlantic, given the possibility that the Fed will hold back on rate cuts, which would benefit financial institutions' margins.

Against this backdrop, investors are probably already moving their portfolios, and Bankinter therefore invited them to "focus even more than before on the US stock market investment strategy, to reduce Europe and ignore emerging markets".

In the short term, the market's attention is focused on two important events on Thursday: the Fed meeting and the Bank of England (BoE) meeting. In both cases, a 25 basis point cut in interest rates is taken for granted, so the highlight will come with the subsequent speeches, where investors will be looking for clues about the next steps.

At 08:07 GMT on Thursday and after recovering from the previous session's 2.9% plunge - the worst fall since March 15, 2023 - the IBEX 35 was up 49.30 points, or 0.43%, to 11,544.60 points, while the FTSE Eurofirst 300 index of large European stocks was up 0.26%.

In the banking sector, Santander rose 1.34%, BBVA gained 2.10%, Caixabank advanced 1.26%, Sabadell gained 1.57%, Bankinter gained 1.32%, and Unicaja Banco rose 1.12%.

Among the large non-financial stocks, Telefónica gained 0.49%, Inditex gave up 0.62%, Iberdrola gained 0.27%, Cellnex gained 0.15%, and the oil company Repsol rose 0.93%.

(Information by Mireia Merino; edited by Tomás Cobos)