Spain's IBEX 35 stock index opened in positive territory on Monday, at the start of a week full of corporate results and macroeconomic data, as markets gradually resumed their appetite for risk as fears of a wider conflict in the Middle East dissipated.

Iran said Friday that it did not plan to retaliate after an apparent Israeli drone strike within its borders, which itself followed an unprecedented Iranian missile and drone strike against Israel days earlier.

Tehran downplayed the attack, in what appeared to be a move aimed at preventing a regional escalation.

"These gains anticipate a more positive mood in Monday's trade, suggesting investors are refocusing on economic fundamentals rather than geopolitical fears," Sergio Avila, market analyst at IG, said in a note to clients.

This week, the focus will be on US first-quarter gross domestic product data and the personal consumption expenditures price index (PCE), which is the Fed's favored inflation measure.

Investors will also be looking ahead to the Bank of Japan's (BoJ) monetary policy review on Friday, as well as Tuesday's release of preliminary April PMIs--composite, manufacturing and services--in the Eurozone, the United States and the United Kingdom.

The markets will also be attentive to the publication of corporate results on both sides of the Atlantic, with Iberdrola, Sabadell, Mapfre, Repsol, Acerinox and Cellnex standing out in Spain.

At 0705 GMT on Monday, the selective Spanish stock market index IBEX 35 was up 113.00 points, or 1.05%, to 10,842.50 points, while the FTSE Eurofirst 300 index of large European stocks was up 0.52%.

In the banking sector, Santander rose 1.52%, BBVA gained 1.08%, Caixabank advanced 0.92%, Sabadell gained 1.08%, Bankinter gained 0.66%, and Unicaja Banco rose 0.70%.

Among the large non-financial stocks, Telefónica gained 1.57%, Inditex advanced 1.33%, Iberdrola gained 1.15%, Cellnex gained 1.76%, and the oil company Repsol rose 0.40%.

Among the rest of the electricity companies, Naturgy gained 1.66%, while Endesa lost 1.06%.

(Information by Benjamín Mejías Valencia; edited by Javi West Larrañaga)