IBEX 35 
After a massive sell-off in currencies and equities earlier Monday, driven by concerns about the US economy and the Bank of Japan's tightening policy, Thursday's better-than-expected US jobs data led markets to reduce bets of interest rate cuts from the Federal Reserve this year.
However, investors remain unconvinced that the Fed can afford to go slow on rate cuts and its price of 100 basis points of easing by the end of the year, according to CME Group's FedWatch tool, corresponds to a recession scenario.
"We continue in an environment of doubts about the evolution of the economic cycle, with macroeconomic data continuing to support the idea of a mild slowdown, but a market beginning to question whether the central banks' response has come late and the implications on the economy," Renta 4 analysts said in a note to clients.
This scenario leaves markets highly vulnerable to data and events, particularly U.S. producer and consumer price figures due on Tuesday and Wednesday of this week, respectively, the global central bank meeting in Jackson Hole next week, and even the results of Nvidia, the star artificial intelligence company, at the end of the month.
"Today we expect a session of relative calm in the absence of any reference on both the macro and corporate fronts, but volatility will again go 'in crescendo' as the week progresses," Bankinter analysts said via Telegram.
"The normal thing would be to see zigzag movements in this recovery process. It is precisely these moments of volatility that generate entry opportunities at attractive levels," according to Bankinter.
According to Renta 4, during the remainder of the summer "stock markets could offer better entry points in the face of the materialization of some risks (elections, extension of the conflict in the Middle East, cycle, inflation), although profit-taking should be limited with the support of sector rotation, interest rate cuts and the soft landing of the global economy."
In addition to July retail sales, data on industrial production and housing starts will be released this week, as well as several regional manufacturing and consumer confidence surveys.
Results from Walmart and Home Depot this week will also provide a snapshot of where U.S. consumers stand.
At 0702 GMT on Monday, Spain's selective IBEX 35 stock index was up 39.20 points, or 0.37%, to 10,677.70 points, while the FTSE Eurofirst 300 index of large European stocks was up 0.27%.
In the banking sector, Santander rose 0.28%, BBVA gained 0.34%, Caixabank advanced 0.10%, Sabadell gained 0.56%, Bankinter gained 0.11%, and Unicaja Banco lost 0.52%.
Among the large non-financial stocks, Telefónica gained 0.12%, Inditex advanced 0.50%, Iberdrola gained 0.17%, Cellnex gained 0.38%, and the oil company Repsol rose 0.20%.
(Information by Benjamín Mejías Valencia; edited by Javi West Larrañaga)
