The Ibex-35 opened lower on Friday, in line with European markets, against a backdrop of reduced expectations of sharp and early interest rate cuts by major central banks this year, as investors awaited US employment data due later in the day.

"After Fed minutes that seem to subtract some euphoria from markets regarding an early start of rate cuts (March 2024, versus Fed members suggesting year-end), the focus will return to data developments, especially inflation and employment," Renta 4 analysts said in a note to clients.

According to CME Group's Fedwatch tool, the odds of the US Federal Reserve cutting rates between now and March are slightly higher at 2 in 3, down from 71% a week earlier.

"The market was probably ahead of the end of last year in terms of pricing in the soft landing," added Moh Siong Sim, currency strategist at Bank of Singapore, referring to this year's 160 basis points of cuts set by markets at the end of 2023.

At 0805 GMT on Friday, Spain's selective Ibex-35 stock market index was down 78.00 points, or 0.77%, to 10,104.40 points. The index was on track to close the week almost unchanged, with an advance of 0.01%.

The FTSE Eurofirst 300 index of large European stocks fell by 0.59%.

In the banking sector, Santander lost 0.84%, BBVA fell 0.61%, Caixabank dropped 0.48%, Sabadell fell 0.25%, Bankinter lost 0.59%, and Unicaja Banco lost 0.65%.

Among the large non-financial stocks, Telefónica fell 0.46%, Inditex dropped 1.37%, Iberdrola dropped 0.71%, Cellnex fell 0.63%, and the oil company Repsol lost 0.29%.

The Anglo-Spanish airline group IAG fell 0.90%, after Iberia's ground staff began a four-day strike at Spanish airports on Friday, forcing the cancellation of hundreds of flights.

(Reporting by Benjamín Mejías Valencia; additional reporting by Ankur Banerjee; editing by Javi West Larrañaga)