The Spanish stock market index Ibex-35 opened Wednesday with a moderate decline and saw the 10,000 point level in danger, as investors continue to adjust their positions to incorporate a horizon of cuts in the cost of borrowing that is less rapid than speculated by the markets.

In recent weeks, hopes that moderating inflation would pave the way for a drastic turnaround in the interest rate path in 2024 - which triggered a meteoric rally in November and part of December, contributing to the biggest annual rise in the Spanish selective in 14 years - are experiencing a crash landing.

This scenario has been compounded by signs of strength in the economy, accompanied by recommendations for prudence from the heads of the major central banks.

According to Renta 4, "the market has reduced expectations of a first rate cut (by the Federal Reserve) of 25 bp in March from 85% to 60% after the latest macro data, which continue to show a fairly strong economy".

Analysts do not expect much change in equities until the US inflation figures are released on Thursday, which could bring a rebound (from 3.1% in November to 3.2% in December) in the year-on-year CPI.

Investors are also still waiting for the start of the fourth quarter earnings season, with several US banks reporting on Friday, including Bank of New York Mellon Group, BlackRock, JPMorgan, Bank of America, Wells Fargo and Citigroup.

In this context, at 0805 GMT on Wednesday, the selective Spanish stock market index Ibex-35 fell 25.10 points, or 0.25%, to 10,035.20 points, while the FTSE Eurofirst 300 index of large European stocks fell 0.20%.

In the banking sector, Santander lost 0.86%, BBVA fell 0.43%, Caixabank dropped 0.66%, Sabadell fell 0.91%, Bankinter dropped 1.88%, and Unicaja Banco lost 0.86%.

Among the large non-financial stocks, Telefónica fell 0.70%, Inditex advanced 0.53%, Iberdrola dropped 0.21%, Cellnex fell 0.40%, and the oil company Repsol lost 0.46%.

The plasma derivatives group Grifols, which on Tuesday lost 30% of its value after the investment fund Gotham City Research claimed that the company's debt ratios are actually much higher than those officially declared -something the company denied-, rebounded 5.55% on Wednesday.

(Reporting by Tomás Cobos; editing by Benjamín Mejías Valencia)