The IBEX 35 opened Tuesday with a slight decline, extending the setbacks of the previous two days and once again below 12,000 points, in a climate of caution in the face of macroeconomic and geopolitical dilemmas that encourage profit-taking.

After a six-session bullish streak that saw the Spanish stock index rise more than 500 points until last Thursday, the market is now in a consolidation phase.

Initial optimism, based on expectations of lower interest rates in the United States and Europe, as well as confidence in a favorable resolution of the French political crisis, has given way to a more cautious scenario.

Multiple uncertainties weigh on the financial markets, including doubts about the future of Syria after the fall of Bashar al-Asad's regime and the pace of monetary easing by the Federal Reserve (Fed).

In this regard, investors will be watching US inflation data due for release on Wednesday, as it could influence the Fed's future interest rate decisions.

"Inflations are entering a stage of rallies and so it would be better for the market to fit them in with the caution they deserve, especially given the excellent 2024 we have been carrying (on the stock markets)," Bankinter analysts warned on their Telegram channel.

Uncertainty over U.S. monetary policy resurfaced after a stronger-than-expected jobs report on Friday, which could point to inflationary pressures and call for a rethink among Fed leaders.

Also, trade tensions between China and the United States have resurfaced following China's move to investigate US technology company Nvidia, in a possible response to President-elect Donald Trump's tariff threats.

However, the outlook could improve on Thursday with the expected interest rate cuts by the ECB, which will also publish its new macroeconomic estimates, and the Swiss central bank.

At 0802 GMT on Tuesday, Spain's IBEX 35 was down 31.90 points, or 0.23%, to 11,982.70 points, while the FTSE Eurofirst 300 index of large European stocks was down 0.24%.

In the banking sector, Santander lost 0.31%, BBVA fell 0.23%, Caixabank dropped 0.11%, Sabadell fell 0.13%, Bankinter dropped 0.08%, and Unicaja Banco rose 1.06%.

Among the large non-financial stocks, Telefónica fell 0.37%, Inditex dropped 0.07%, Iberdrola gained 0.15%, Cellnex fell 0.60%, and the oil company Repsol lost 0.40%.

(Information by Tomás Cobos; edited by Benjamín Mejías Valencia)