European stocks ended sharply lower on Friday as rising energy prices deepened fears of stagflation across the region. The Eurozone’s STOXX 50 fell 1.1% to 5,508, while the broader STOXX 600 declined 0.9% to 575.
US President Trump announced that he would extend the suspension of strikes on Iran’s energy infrastructure until April 6th to allow more time for negotiations. Even so, the recent climb in oil prices is already feeding through to higher inflation.
Preliminary data from Spain showed inflation in March jumping to its highest level since 2024, with consumer prices rising 1% on the month—the fastest pace since 2022—largely reflecting the impact of the conflict with Iran.
Bank stocks weakened further as sovereign bond yields continued to climb, with BBVA, UniCredit, and Deutsche Bank losing between 2.5% and 1.3%. Industrial names also extended their recent poor performance, with Siemens down 2.3% and Schneider Electric off 3.3%.
