The Spanish stock index IBEX 35 opened with a moderate advance on Wednesday and surpassed 11,000 points, a level it has not surpassed for almost 7 years, as market speculation continues about a horizon with interest rates more favorable to economic growth.

In any case, movements are expected to be limited, in a market entrenched while awaiting important macroeconomic and monetary references that will not be reflected in the quotations until after the Easter holidays.

The financial markets remained focused on the monetary policy outlook, following comments from some representatives of the US Federal Reserve (Fed) that questioned investors' hopes about the start of interest rate cuts, which further intensifies the focus on the inflation data to be known on Friday in the United States, the PCE index.

The data, as well as other important indicators and benchmarks, will be known when the European markets are already closed for Easter - most of them will not reopen until Tuesday, April 2 -, so there will be little incentive to take risk positions beforehand.

"(...) what is relevant will come on Friday with the French and Italian inflation and the US Consumer Price Index (PCE). The risk is that they will rebound and leave the market cold. In the meantime, it is logical that the stock markets remain immersed in this consolidation phase. No significant rises or falls," said Bankinter analysts this week.

On Friday there will also be statements from Fed Chairman Jerome Powell, which could warn markets against betting on a rapid cut in borrowing costs.

Meanwhile, Spain's inflation figures were released on Wednesday, showing a slightly lower-than-expected increase in prices, which will form part of the overall eurozone index due next week.

Overall, at 0805 GMT on Wednesday, Spain's selective IBEX 35 stock market index was up 33.70 points, or 0.31%, to 11,025.20 points, its highest level since early May 2017, while the FTSE Eurofirst 300 index of large European stocks advanced 0.01%.

In the banking sector, Santander was up 0.36%, BBVA scored 0.18%, Caixabank advanced 0.37%, Sabadell gained 0.24%, Bankinter appreciated 0.48% and Unicaja Banco rose 0.09%.

Among the large non-financial stocks, Telefónica gained 0.49%, Inditex advanced 0.83%, Iberdrola gained 0.04%, Cellnex fell 0.61%, and the oil company Repsol lost 0.10%.

(Information by Tomás Cobos; edited by Mireia Merino)