After sealing its best rally in almost seven months the day before, the IBEX 35 opted for caution at the opening of Friday, a day in which important consumer price figures will be released in the euro zone and the United States.

Thanks to Thursday's advance, the index is on track for a weekly gain of 0.9% and a monthly rise of 4.5%, although inflation reports could derail or amplify these increases.

At 0900 GMT, eurozone CPI for May will be released, with analysts polled by Reuters forecasting a 2.5% year-on-year increase, which could cast doubt on ECB rate cuts beyond the June meeting, where cheaper borrowing costs are already priced in.

"Watch out also for services inflation, which could remain high at around 4%," said securities house Renta 4.

"One more sign of the difficulty of reaching the 2% inflation target in a sustainable way, which limits the ECB's room for maneuver beyond June, justifying that, once the first rate cut materializes next week (6-June, almost 100% probability of -25bp), we will have to wait until September/October for the second cut (data-dependent), especially in the face of cyclical acceleration and upside risk in energy."

Then at 1230 GMT it will be the turn of the US consumer deflator (also known as the PCE index), which could show a rise of 2.8% y-o-y and 0.3% m-o-m in underlying terms, i.e. excluding energy and unprocessed food.

"We will see if the data confirms the current market expectation of 1 single Fed rate cut in 2024," said analysts at Renta 4.

At 07:15 GMT on Friday, Spain's selective IBEX 35 stock index was up 15.70 points, or 0.14%, to 11,353.90 points, while the FTSE Eurofirst 300 index of large European stocks was up 0.12%.

For the week as a whole, the IBEX 35 is up 0.9%, with a monthly increase of 4.5%.

The banking sector, which on Thursday was the driving force behind the rebound in the IBEX on the prospect of higher-than-expected interest rates, showed mixed trends on Friday: Santander was up 0.47%, BBVA was down 0.16%, Caixabank was up 0.34%, Sabadell showed little change, Bankinter was down 0.20%, and Unicaja Banco lost 0.45%.

Among the large non-financial stocks, Telefónica gained 0.40%, Inditex advanced 0.23%, Iberdrola dropped 0.08%, Cellnex gained 0.83%, and the oil company Repsol rose 0.81%.

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