The main Spanish stock market index Ibex-35 closed Friday higher and recovered part of the losses suffered in the three previous days, as fears about the possible default in the United States were shaken off.

Markets ended the week on a positive note ahead of a long holiday weekend in the US, and optimism prevailed on news that the White House and Congressional Republicans are nearing a deal to raise the government's $31.4 trillion debt ceiling.

Traders are still keeping an eye on central banks and are adjusting their estimates following the release of a slew of US data, including inflation.

According to the CME's FedWatch tool, the probability that the FOMC (Federal Open Market Committee) will keep rates unchanged at its June 13-14 meeting is now 44%, down from 59% just before the figures were released. The probability of a 25 basis point hike is now 56%, up from 41% prior to the data release.

Against this backdrop, the selective Spanish stock market index Ibex-35 closed up 75.00 points on Friday, up 0.82%, at 9,191.10 points, while the FTSE Eurofirst 300 index of large European stocks was up 1.28%.

For the week as a whole, the Ibex-35 registered a decline of 0.65%.

In the banking sector, Santander rose 1.33%, BBVA gained 1.00%, Caixabank advanced 1.63%, Sabadell gained 0.50%, Bankinter dropped 0.62%, and Unicaja Banco lost 0.53%.

Among the large non-financial stocks, Inditex advanced 1.07%, Iberdrola gained 0.92%, Cellnex gained 0.51%, and the oil company Repsol rose 0.50%.

(Information by Flora Gómez)