Oil price surge pushes European stocks lower, Milan worst hit

European stock markets fell sharply on Friday, with Milan recording the worst performance as oil prices surged above $111 per barrel. Italy's FTSE Mib index dropped 2.54% to 48,383 points, while Paris fell 1.39%, Frankfurt 1.07%, and London 0.26%. The sell-off was driven by concerns over high-debt countries amid rising bond yields, worries about AI investments, and geopolitical tensions. The Italian-German bond spread widened to 124 basis points from 115, with Italy's 10-year yield stable at 4.57% while Germany's fell to 3.33%. Disappointing quarterly results from Tesla and Meta added to market anxiety, while reports suggested Israel and the US might resume conflict with Iran after midterm elections. Major losers included Technoprobe (-7.63%), Prysmian (-7.61%), and Saipem (-6%), while Moncler and Campari gained.