European Markets Fall as Brent Tops $112, Diesel Prices Surge

European stock markets fell sharply on Thursday, October 22, 2026, with Milan's FTSE Mib index dropping as much as 2 percent, pressured by tech sector losses and surging oil prices. The Italian-German bond spread widened to 128 basis points, while Brent crude rose above $112 per barrel. The pan-European Stoxx 600 index declined about 1 percent, with Milan among the worst performers alongside Madrid, Paris, and Frankfurt. Bank shares led losses in Italy, while technology stocks fell on investor concerns about artificial intelligence investment returns. The spread later eased to 126 points, with Italy's 10-year yield at 4.67 percent. Rising crude prices pushed diesel costs to 2.30 euros per liter on Italian highways, while gasoline averaged 2.047 euros. Natural gas prices remained near December 2022 highs above 89 euros per megawatt-hour, adding to inflationary pressures across the region.