The Spanish stock index IBEX 35 rose at the opening on Tuesday, while the markets - still pending corporate results - were processing the possibilities of an interest rate cut in the United States and observing the situation in the Middle East, where negotiations for a ceasefire in Gaza continued without a solution.

Investors remained optimistic after last week's softer-than-expected U.S. employment data and statements by Federal Reserve Chairman Jerome Powell, who reiterated that the next rate move will be downward.

European monetary leaders are preparing cuts for June and rates are not expected to move much above zero in Japan this year, which would leave a wide gap with the rest of the world if the Fed does not move in the same vein.

On the geopolitical front, Hamas accepted a Gaza ceasefire proposal from mediators on Monday, but Israel said the terms did not meet its demands and went ahead with attacks in Rafah while it planned to continue negotiations on a deal.

The lack of agreement between the sides in the seven-month conflict has supported the rise in oil prices as investors fear the regional escalation of the war will disrupt crude supplies from the Middle East.

In a session without major macroeconomic references, "the main protagonists today will be corporate results, which are gaining intensity in Europe," Bankinter analysts said in a note to clients.

"The objective today should be to consolidate after several days of rebound, although the underlying tone remains positive," they added.

At 0706 GMT on Tuesday, Spain's selective IBEX 35 stock market index was up 61.60 points, 0.55%, to 10,977.80 points, while the FTSE Eurofirst 300 index of large European stocks advanced 0.57%.

In the banking sector, Santander rose 0.89%, BBVA gained 1.57%, Caixabank advanced 0.76%, Sabadell fell 2.62%, Bankinter gained 0.57%, and Unicaja Banco rose 0.08%.

Among the large non-financial stocks, Telefónica gained 0.35%, Inditex advanced 0.63%, Iberdrola gained 0.60%, Cellnex fell 0.34%, and the oil company Repsol rose 0.41%.

(Information by Benjamín Mejías Valencia; edited by Mireia Merino)