Travel stocks led the declines, with EasyJet and IAG both down more than 3%. Major banks were also weaker: HSBC, Lloyds, Barclays and NatWest fell between 1.4% and 2.5%. Rolls-Royce lost around 3%.

Miners came under pressure as well, with Antofagasta sliding more than 4%, while Fresnillo and Endeavour dropped 3% and 2.4% respectively. By contrast, energy majors benefited from the spike in crude, with BP and Shell among the FTSE 100’s top performers, gaining 3.1% and 2.4%.

Prices of manufactured products also returned to growth (1.2% vs. -1.7%), with declines moderating in chemicals and chemical products (-7.7% vs. -10.4%) and in computer, electronic and optical products (0.9% vs. -0.4%).

Prices for water supply, sewerage, waste management and remediation services were stable at 3.9%, while prices for electricity, gas, steam and air conditioning dropped by 9.2%, reversing a 7.1% increase recorded in February.

On a monthly basis, producer prices rose by 1.5% in March, accelerating from a 0.1% gain in the previous month.

The developments came as US negotiators traveled to Pakistan for a second round of talks on the eve of the truce’s expiration, with Tehran threatening to boycott the process. The renewed geopolitical uncertainty pushed oil prices higher, reigniting concerns about inflationary pressures and weighing on the broader economic outlook. Most sectors declined, with travel and industrial stocks among the hardest hit.

In addition to restricting traffic along one of the world’s most critical shipping lanes, the conflict has directly curtailed production capacity. Major refineries in the UAE and Bahrain sustained damage after being hit by Iranian strikes. Analysts warned that regional supply constraints could last for months even if hostilities subside soon, as repairing smelting and refining facilities is expected to be a lengthy process. Emirates Global Aluminium, the region’s largest producer, stated that it will need at least a year to fully restore production.

Costs also rose in electricity, gas, steam, and air-conditioning supply (2% vs 1%), as well as in water supply, sewerage, waste management, and remediation services (5.5% vs 5.1%). By contrast, price growth slowed in mining and quarrying (33% vs 34.2%).

On a monthly basis, producer prices advanced 1.5% in March, rebounding from a 0.4% decline in the previous month.

On the supply side, industry data showed that port stockpiles in China fell 0.7% to 164.8 million tons last week, marking a second consecutive weekly decline. At the same time, an ongoing dispute between state-backed China Mineral Resources Group and Australia’s BHP Group has added uncertainty to the supply outlook.

Further weighing on sentiment, prolonged disruptions in the Strait of Hormuz have constrained metals shipments to the Gulf. The region was China’s second-largest steel export market last year, accounting for about 16% of its record-high steel exports.

The figures, updated on 20 April 2026, are based on year-over-year comparisons, with the current reading measuring March 2026 against March 2025 and the previous reading comparing February 2026 with February 2025. While producer prices remain in negative territory, the smaller annual decline in March points to a gradual stabilization in input and wholesale price dynamics, which could, over time, filter through to consumer prices and influence the Czech National Bank’s policy calculus.

The month‑over‑month comparison shows that while producer prices were almost flat at the start of the year, they have now moved decisively higher. The February 2026 reading of 0.1% reflected only marginal cost increases compared with January, but March’s 1.5% jump indicates a clear acceleration in price dynamics at the production level.

Investors and policymakers will be watching closely to see whether this momentum in producer prices persists in the coming months, as sustained increases could add to broader inflationary pressures in the Czech economy and influence expectations around future monetary policy decisions.

The US seized an Iranian-flagged cargo vessel in the Gulf of Oman, and Tehran subsequently reversed plans to reopen the Strait of Hormuz and announced it would not participate in a second round of negotiations. Persistent disruptions in this key shipping corridor have unleashed a sharp energy supply shock, amplifying inflationary pressures and posing a threat to global growth, with oil-importing economies such as Japan especially exposed.

Even so, AI-driven optimism and solid corporate earnings underpinned Japanese equities, with notable gains from SoftBank Group (up 5.5%), Lasertec (up 5.4%), and Unitika (up 21.4%).

The renewed blockade followed Iran’s reversal of its earlier stance, with Tehran citing “repeated breaches of trust” by the United States over the ceasefire. Tensions escalated further after US forces intercepted and seized an Iranian-flagged vessel, prompting Iran to launch drone strikes toward US naval assets and to warn that any ships attempting to transit the strait would be attacked.

The conflict has already disrupted roughly one-fifth of global LNG flows, though weaker demand from Asia has helped ease competition for cargoes. At the same time, National Gas recently signaled that domestic inventories should be adequate to meet summer demand and may even enable some exports to continental Europe.

Investors continued to track fast-moving geopolitical developments in the Middle East, after the U.S. seized an Iranian-flagged cargo ship in the Gulf of Oman that had reportedly attempted to breach a naval blockade. In China, Australia’s largest trading partner, the central bank left its benchmark loan prime rates unchanged for an 11th consecutive month in April, matching market expectations.

On the corporate front, Viva Energy said it plans to ramp up diesel, jet fuel, and gasoline output to more than 90% of capacity within weeks, following a fire that damaged part of its Geelong refinery in southeastern Australia last week.

Among individual movers, Genesis Minerals rose 2.3%, Regis Resources gained 1.9%, and Bluescope Steel added 1.3%. On the downside, South32 dropped 3.5%, Woodside Energy fell 2.8%, and Pro Medicus declined 2.4%.

At the same time, the platinum market remains structurally tight. Production is heavily concentrated in South Africa and Russia, leaving global supply highly exposed to disruptions. In South Africa, aging mines, elevated power costs, and only incremental contributions from new projects such as Platreef continue to constrain output growth. In Russia, sanctions-related restrictions are expected to curb production further. While recycling volumes have increased, they still fall short of offsetting the decline in primary mine supply.

The prospect of prolonged disruption in this critical shipping corridor has unleashed an unprecedented energy supply shock, intensifying inflationary pressures and threatening global growth, with energy-importing European economies particularly vulnerable. Against this backdrop, Monday’s European calendar is relatively light, with no major economic data releases or corporate earnings reports scheduled. In premarket trade, Euro Stoxx 50 futures were down 1.4%, while Stoxx 600 futures declined 1%.

Prices for non-durable consumer goods also decreased (-0.3%), mainly due to cheaper food, especially butter and pork. In contrast, prices for capital goods (1.9%) and durable consumer goods (1.9%) continued to rise, as did prices for intermediate goods (1.5%), primarily on the back of higher metals and wood product costs. Excluding energy, producer prices increased by 1.3%.

On a monthly basis, producer prices surged 2.5%, the strongest rise since August 2022 and well above the expected 1.4% increase, driven mainly by a 7.5% jump in energy costs.

On the demand side, buying interest from India, the world’s largest palm oil importer, is expected to rebound following a 19% decline in March shipments. Domestically, Malaysia’s palm-based biodiesel consumption is forecast to increase by more than 300,000 tonnes per year, according to the industry regulator, as the country moves in step with Indonesia to advance blending mandates and curb dependence on imported fuels.

Upside, however, remained limited after Statistics Malaysia reported a modest decline in March exports of palm oil and related products, underscoring softer demand after the festive period. In separate data, cargo surveyors indicated that palm oil shipments for April 1–15 slumped by more than 34% month-on-month.

The figures, measured on a year-over-year basis, indicate that while factory-gate prices in Europe’s largest economy are still below their level of a year ago, the pace of decline has moderated considerably. In February, prices were 3.3% lower than in February 2025; by March, they were only 0.2% below March 2025 levels.

For markets and policymakers, the sharp easing in producer price deflation may suggest that the worst of the industrial price downturn is passing. Although still in negative territory, the near-flat March reading could foreshadow a more neutral pricing environment ahead, with implications for corporate margins, inflation dynamics and future monetary policy expectations in the euro area.

According to data updated on 20 April 2026, the German Producer Price Index (PPI) rose 2.5% month-over-month in March, a marked turnaround from February 2026, when producer prices fell by 0.5% compared with the previous month. The figures are measured on a month-over-month basis, meaning the current reading reflects the change in March relative to February, while the previous reading captured February’s change versus January.

The sharp swing from negative to positive territory suggests that cost pressures at the factory gate have intensified within a short period. While PPI does not always pass directly through to consumer prices, a sustained upward move could revive inflation concerns and influence expectations for monetary policy and corporate margins in the months ahead.

Upside was limited, however, by a pullback in U.S. futures after Iran once again closed the Strait of Hormuz, following the U.S. seizure of an Iranian vessel. Investors also remained cautious ahead of Tuesday’s release of Q1 inflation figures, which are expected to help shape the Reserve Bank’s monetary policy outlook amid rising oil prices.

Notable gainers included Henderson Far East Income (up 2.6%), Gentrack Group (2.2%), Infratil (2.1%), Meridian Energy (2.0%), Colonial Motor Company (1.7%), and ANZ Group (1.4%).

On a year‑over‑year basis, both the February and March readings compare producer prices in 2026 to their respective levels in 2025. The moderation from 0.8% to 0.7% suggests that while costs for Estonian producers are still edging higher, the pace of increase remains subdued and is showing tentative signs of softening heading into the spring months.

On a month-over-month basis, the March reading indicates that cost pressures at the factory gate have eased considerably within just one month. The comparison framework shows that while February’s move was nearly flat, March’s decline signals a much steeper reduction in prices received by producers.

The deeper negative PPI print may reflect weakening pricing power among Estonian producers and could feed into softer wholesale and, eventually, consumer prices if the trend persists. However, the data provided cover only month-over-month dynamics and do not include details by sector or year-over-year performance.