The Spanish Ibex-35 index slowed at the open on Thursday, in an unsettled market after new indications that interest rates could stay higher and for a longer period of time than expected.

Contrary to expectations, the Bank of Canada on Wednesday raised its benchmark interest rate to 4.75%, its highest level in 22 years, after which markets and analysts immediately predicted another hike next month to curb the overheating economy and persistent inflation.

These developments, which followed the path previously indicated by the Reserve Bank of Australia and were reinforced on Thursday morning by the tough monetary message from India's central bank, pushed up US debt yields, in a market that sees expectations of a rate cut in the country in the final stretch of the year receding.

"This comes against a backdrop that shows central banks are not yet done with their job of controlling inflation," said analysts at Renta 4.

Against this backdrop, next week's monetary policy meetings of the Federal Reserve (June 13 and 14) and the European Central Bank (June 15), as well as the U.S. CPI on June 13, become even more important.

On Thursday, the focus will be on the revised first-quarter eurozone GDP data and the weekly U.S. unemployment report.

Against this backdrop, at 07:05 GMT on Thursday, the selective Spanish stock market index Ibex-35 was up 0.50 points, or 0.01%, to 9,360.30 points, while the FTSE Eurofirst 300 index of large European stocks was down 0.21%.

Despite the doubts at the start of Thursday's trading, the Spanish stock index remains at its highest levels since April 24.

In the banking sector, Santander rose 0.59%, BBVA gained 0.65%, Caixabank advanced 0.89%, Sabadell gained 0.66%, Bankinter gained 0.81% and Unicaja Banco rose 0.33%.

Among the large non-financial stocks, Telefónica gained 0.33%, Inditex fell 0.56%, Iberdrola gained 0.09%, Cellnex fell 1.05%, and the oil company Repsol rose 0.71%.

(Information by Tomás Cobos; edited by Darío Fernández)