IBEX 35 Analysis: Rally Continues Despite Virus Fears, Focus Shifts to Fed 2021-07-27 00:00:00 Brendan Fagan, IBEX 35, European Central Bank, Federal Reserve - Talking Points IBEX 35 continues to rally despite fears over Delta COVID variant, additional lockdowns European Central Bank to remain accommodative, asset purchases to continue European investors look to Wednesday’s FOMC meeting with caution The Spanish IBEX 35 benchmark stock index continues to rally following dovish comments from European Central Bank (ECB) President Christine Lagarde. In her remarks last week, Lagarde reassured that interest rates were not going to be raised even if inflation temporarily runs above the bank’s 2% target over the medium term. Lagarde also indicated that the bank would maintain purchases under its asset purchase program (APP). The accommodative stance from the ECB pushed European equity markets higher, with the IBEX 35 index trading back above 8,700. Investors and traders may become more cautious on Wednesday, with Federal Reserve Chair Jerome Powell set to speak following the central bank’s interest rate decision.