Geopolitical risks and a sharp rise in Spanish producer prices weigh on investor sentiment across European markets.
European equities declined as escalating geopolitical risks in the Middle East and Ukraine dampened risk appetite. Ferrari shares led losses in the luxury sector amid broader market weakness.
Spain’s producer price inflation jumped to 8.3% year-on-year in April 2026, the highest since December 2022, up from a revised 3.1% in March. The surge reflects rising energy and commodity costs, adding pressure on margins.
Markets showed limited reaction to the data, focusing instead on geopolitical developments and their potential impact on global supply chains.