A brutal sell-off in chip stocks has restored appeal to traditional markets, with Spain's Ibex 35 leading the charge. The index has risen 15 per cent so far in 2024, outpacing the Stoxx 600's 10 per cent and FTSE's 11 per cent, following a 49 per cent gain last year. Unlike tech-heavy indices, the Ibex features just one IT stock—Indra Sistemas—and benefits from a dominance of financial stocks, particularly Santander and BBVA, which account for nearly 40 per cent of the index.

Repsol has soared over 60 per cent this year, driven by higher energy prices and Venezuela oil prospects. Spain's electricity market, less reliant on natural gas than the UK, provides resilience against price shocks. The economy is forecast to grow 2.1 per cent this year, supported by record tourism—47 million international visitors in the first half—and renewable energy advantages attracting AI infrastructure investment.