Spain's IBEX 35 stock index took a breather on Friday after six days of gains and was on track for its best weekly rise since November 2023, as traders look to the US jobs report for clues on the interest rate cutting cycle.

The Spanish index has recovered almost 500 points since Monday and managed to surpass the 12,100-point level on Thursday, a level it had not reached at closing prices since January 2010.

The selective index thus overcame the uncertainty that has haunted Europe and afflicted the euro during the week, given the climate of unrest in France due to the debacle of the fall of the government.

However, Sabadell analysts highlighted the confidence of investors that the worst possible scenarios will not materialize.

"In France, (Emmanuel) Macron's appearance calmed market sentiment by promising a prime minister in the coming days and made it clear that he will serve out his presidential term until 2027," they explained.

Macron indicated on Thursday that he will appoint in the coming days a new chief executive whose top priority will be to get Parliament to approve a budget for 2025.

Beyond political uncertainties, the U.S. November job creation report, due out at 1330 GMT, will be the day's most important release, as it could affect the speed and amount of rate cuts expected by traders from the Federal Reserve.

According to LSEG's IRPR tool, markets assign 68% odds to a 25 basis point (bp) cut by the Fed at the December 17-18 meeting, with the remaining 32% leaning towards the possibility of no change.

On this side of the Atlantic, estimates reflect less uncertainty, with 85% of traders estimating a quarter-percentage-point cut at the December 12 European Central Bank (ECB) meeting, and 15% estimating an even larger cut of 50 bps.

In addition, the Spanish market could show less volume than usual on Friday, due to the Constitution Day holiday.

Thus, at 0813 GMT on Friday, the selective Spanish stock market IBEX 35 was up 10.80 points, or 0.09%, to 12,129.50 points, a weekly rise of 4.22%.

The FTSE Eurofirst 300 index of large European stocks fell by 0.08%.

In the banking sector, Santander lost 0.17%, BBVA gained 0.06%, Caixabank advanced 0.70%, Sabadell gained 0.57%, Bankinter gained 0.49%, and Unicaja Banco rose 0.23%.

Among the large non-financial stocks, Telefónica gained 1.13%, Inditex gave up 0.04%, Iberdrola lost 0.04%, Cellnex gained 0.03%, and the oil company Repsol rose 0.53%.

Leading the corrections was the Catalan cosmetics company Puig, which plummeted 7.32% after announcing that it was going to recall batches of a spray of one of its brands due to "an isolated quality problem".

(Reporting by Javi West Larrañaga; edited by Tomás Cobos)