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European Shares Fall as Inflation Worries Pressure Global Markets

LONDON, 18 May 2026 – European shares declined on Monday as inflation concerns, higher oil prices and geopolitical uncertainty weighed on investor sentiment, extending pressure across global equity markets after last week’s bond selloff.

The pan-European STOXX 600 fell 0.5%, with most major regional markets trading lower. France’s CAC 40 declined 0.9%, while Spain’s IBEX 35 slipped 0.5%, reflecting broad caution as investors reassessed the outlook for inflation, interest rates and corporate earnings.

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Author

  • Tim Clark is a Senior Geopolitical Analyst for The Ledger Asia, specializing in the intersection of international relations and market stability. With over a decade of experience, Tim provides deep-dive insights into Indo-Pacific security, global supply chain resilience, and the strategic competition between major powers.

    Previously a consultant for leading international think tanks, he focuses on how shifting diplomatic landscapes and maritime disputes impact corporate governance and trade policy. At The Ledger Asia, Tim’s analysis equips readers with the clarity needed to navigate the complex regulatory and economic environments of Southeast Asia and beyond.

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