11 May - The Spanish stock index Ibex-35 rebounded on Thursday after two sessions in the red, in a context of stock market disparity in Europe and Asia after the latest inflation data in the United States and China, while the corporate results season gave its final blows.

While Asian markets traded with slight losses after a lower-than-expected increase in China's CPI and the resilience of industrial deflation, European markets resumed Wall Street's upward path, with the reinforcement of optimism about the end of monetary tightening after a more moderate-than-expected US CPI in April.

"However, although the moderation in services prices (excluding housing) is a good sign of support for a pause in rate hikes, price levels are still far from the 2% target, which keeps us in our view that market expectations for a rate cut in the second half of the year (which widen to -75/-100 bps) are overly optimistic," said Natalia Aguirre, from Renta 4, in an analysis note.

Currently, money markets are showing a 5% chance of another quarter-percentage-point Fed rate hike in June, versus a 95% chance of a pause. By the end of the year, three quarter-point cuts are expected.

"Looking ahead to the next Fed meeting (June 14), we will have several more relevant data (CPI and May employment report) that will confirm (or not) the data-dependent pause decided at the May meeting," Aguirre added.

During the session, the latest monetary policy decision of the Bank of England (1000 GMT), which is expected to raise rates by 25 basis points, will be known, while the tense negotiation on the US debt ceiling and its weight in the G7 meeting that starts today will overhang the price.

On the macro data front, during the session, the weekly jobless claims and US producer prices for April will be released (both at 1230 GMT).

At 07:05 GMT on Thursday, the Spanish selective stock market index Ibex-35 was up 28.50 points, or 0.31%, to 9,196.20 points, while the FTSE Eurofirst 300 index of large European stocks was up 0.39%.

In the banking sector, Santander rose 0.41%, BBVA gained 0.41%, Caixabank advanced 0.09%, Sabadell gained 0.61%, Bankinter dropped 0.15%, and Unicaja Banco rose 0.11%.

Among the large non-financial stocks, Inditex advanced 1.02%, Iberdrola gained 0.21%, Cellnex gained 0.65%, and the oil company Repsol lost 0.42%.

Telefónica gained 0.02% after publishing its first quarter results, when it exceeded expectations in revenue and operating income despite a 58% drop in net profit compared to the same period last year.

(Reporting by Darío Fernández; edited by Tomás Cobos)