Spanish equities have outperformed both European peers and the US this year, with the IBEX 35 up nearly 30% year-to-date and the IBEX Small Cap rising about 22%. The rally has been led by banks and firms focused on the domestic market, while headline performers include BBVA (+67% YTD), Santander (+85%), Ferrovial (+14%) and Iberdrola (+17.5%). #IBEX35 #BBVA #Santander #Iberdrola

The strength is backed by a solid macro backdrop: Spanish GDP grew 0.7% in Q2, beating estimates, and Spain is forecast to be among the EU’s fastest-growing economies with about 2.6% growth in 2025 and 2.0% in 2026. By comparison, major European indices are also positive this year — DAX +20%, FTSE 100 +13%, Stoxx 600 ~+8% — while the S&P 500 is up roughly 10%.

Analysts point to structural drivers behind the outperformance. "Spanish economic success is partly driven by massive immigration… which has boosted domestic consumption and corporate revenues," said Arturo Bris of IMD. Anthony Esposito of AscalonVI Capital cautioned that investors may underweight risks from debt, inflation and labour markets, but called the case for Spain "compelling," noting attractive valuations (Spain P/E ~12 vs ~20 in France/Germany and ~13 in Italy) and exposure to growing sectors like finance, public services and renewables. #FiatNews