The Spanish stock index Ibex-35 regained its way back to 9,300 points on Tuesday following the pattern of other world markets, infected by hopes that the Federal Reserve will stop raising rates soon and that China will deploy more aid to the economy.

Fed members signaled on Monday that while there are likely to be a couple more hikes in the coming months, the end of the interest rate tightening cycle is drawing ever closer. The general consensus is for the Fed to raise rates this month, putting them in a range of 5.25% to 5.50%.

Key to this will be the US inflation data, which will be released on Wednesday and will provide a snapshot of consumer prices and the evolution of the Fed's battle.

"(...) a moderation in the headline rate is expected (3.0%e vs 4.0% previously), but with core inflation still at high levels (5.0%e vs 5.3% previously)," wrote the experts at the Renta4 analysis house.

Another indicator of the state of the economy will be the start of the US earnings season, with some of the big banks in the S&P 500 kicking off. According to IBES data from Refinitiv, analysts expect profits to have fallen by 6.4% in the second quarter on a year-on-year basis.

Also weighing on sentiment was the possibility that China will extend more supportive monetary policies for an economy whose recovery is showing signs of losing steam after lower-than-expected price data. On Monday, Chinese regulators extended measures to promote liquidity in the property sector.

"(China's price data) would indicate the possible arrival of new fiscal and/or monetary stimulus to the Chinese economy," added Renta4.

In this context, at 07:06 GMT on Tuesday, the selective Spanish stock market index Ibex-35 was up 32.60 points, 0.35%, to 9,285.50 points, while the FTSE Eurofirst 300 index of large European stocks advanced 0.35%.

In the banking sector, Santander rose 0.46%, BBVA gained 0.41%, Caixabank advanced 0.68%, Sabadell gained 0.69%, Bankinter gained 0.80%, and Unicaja Banco rose 0.99%.

Among the large non-financial stocks, Telefónica fell 0.30%, Inditex advanced 0.32%, Iberdrola gained 0.31%, Cellnex gained 0.39%, and the oil company Repsol lost 0.04%.

(Information by José Muñoz, edited by Tomás Cobos).