European stocks tumble as bond market turmoil and oil price spikes hit markets
European equity markets fell sharply amid rising bond yields and higher oil prices, while a special meeting approved Prysmian's acquisition of Atkore.
European stock markets opened weak and continued to decline, with Milan, Madrid, Frankfurt, Paris and London all posting significant losses as bond markets experienced heightened volatility. Oil prices rose after news of increased attacks on shipping in the Strait of Hormuz and a surprise drop in U.S. crude stockpiles, which fell by more than three million barrels against expectations of a build. The rise in oil prices contributed to higher inflation expectations, prompting investors to anticipate further rate hikes by the European Central Bank and the Federal Reserve.
Meanwhile, a special shareholders' meeting approved Prysmian's cash acquisition of Atkore at $95 per share, subject to remaining closing conditions. Bond yields climbed, pushing the spread between Italy's ten-year BTP and Germany's Bund to its highest point since April 2025, reflecting concerns over fiscal stability and energy market disruptions. Ursula von der Leyen and Emmanuel Macron discussed energy pricing and the EU budget as top priorities at an upcoming summit.
Why it matters
The moves signal tighter financial conditions and heightened energy risk, affecting investors and economies across Europe.
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