The main Spanish selective Ibex-35 showed a moderate advance on Thursday in line with the rally on Wall Street, as faith in the possibility that US parliamentarians will soon agree on a modification of the debt ceiling to avoid a feared default prevailed for the time being.

Analysts at Renta 4 highlighted that, despite the hopes of a deal between Republicans and Democrats, "additional efforts will still have to be made to reach an agreement, which could include certain spending caps, as well as the use of some unused Covid funds".

These analysts also highlight the positive impact of Western Alliance's announcement that its deposits have improved since the close of the first quarter, easing fears for the North American regional bank for the time being, and point to Walmart's figures as the main market mover on the corporate side on Thursday.

On the macroeconomic front, the only references of the day will come from the United States with the weekly unemployment data, the index of business activity from the Philadelphia Federal Reserve and a housing market indicator.

At 07:01 GMT on Thursday, Spain's selective stock market index Ibex-35 was up 37.20 points, or 0.40%, to 9,248.80 points, while the FTSE Eurofirst 300 index of large European stocks was up 0.32%.

Outside the Ibex-35, Técnicas Reunidas rose by 4.07%, after receiving an improved recommendation from Barclays.

In the banking sector, Santander lost 0.25%, BBVA gained 0.97%, Caixabank advanced 0.77%, Sabadell gained 0.87%, Bankinter gained 0.69%, and Unicaja Banco lost 1.07%.

Among the large non-financial stocks, Telefónica gained 0.36%, Inditex advanced 0.45%, Iberdrola gained 0.04%, Cellnex gained 0.21%, and the oil company Repsol rose 0.98%.

(Information by Tomás Cobos; edited by Flora Gómez)