Jan 27 (Reuters) - Spain's main stock index extended its upward streak on Friday to new fourteen-month highs on its way to a fourth straight weekly advance amid economic optimism after U.S. GDP data raised expectations of monetary tightening next week.

Markets give a 94.7% probability of a 25 basis point interest rate hike by the Federal Reserve next Wednesday, following unexpectedly strong U.S. economic growth in the fourth quarter and a drop in jobless claims, which were released on Thursday.

"One could say that the market has already more than discounted a soft landing of the economy, and yet we have elements of uncertainty that still does not seem to have picked up, with the U.S. curve inverted, and a trend of downward guidance revisions or guidance that does not meet estimates in earnings season," Renta 4 nevertheless warned in a daily note.

"Nor should we lose sight of the fact that the United States has already reached the debt ceiling last January 19, although it has no funding problems in the short term and with extraordinary measures they will be able to reach June, at which time Congress must approve an increase in the debt limit," it said. "An increase that the market takes for granted."

In this sense, the main reference of the day will be the US underlying private consumption deflator (13:30 GMT), a measure of inflation preferred by the Fed, which next week will make a new decision on rates one day before the European Central Bank does, on February 1 and 2 respectively.

In Spain, it was learned that GDP grew by 0.2% in the fourth quarter over the previous three months, a better reading than expected.

Thus, at 08:05 GMT on Friday, Spain's selective Ibex-35 stock market index was up 21.70 points, or 0.24%, to 9,057.30 points, its highest level since the close on November 15, 2021.

The FTSE Eurofirst 300 index of large European stocks fell by 0.02%.

In the banking sector, Santander was up 0.11%, BBVA was up 0.53%, Caixabank advanced 0.68%, Sabadell gained 1.13%, Bankinter was up 0.71%, and Unicaja Banco was up 0.81%.

Among the large non-financial stocks, Telefónica fell 0.03%, Inditex dropped 0.32%, Iberdrola gained 0.14%, Cellnex gained 0.53%, and the oil company Repsol rose 0.26%.

ArcelorMittal, which gained 0.92%, and Acerinox, which rose by 1.50%, stood out, due to the optimism for the increase in demand in China after the relaxation of its restrictions by COVID-19.

(Information by Darío Fernández; edited by José Muñoz)