Spanish equities ended Monday lower as weakness across technology, telecommunications, consumer services and consumer goods stocks pulled the market down. The IBEX 35 fell 0.14% at the close, extending the cautious mood seen across European markets.

The decline came as rising oil prices increased concerns about inflation and interest rates across Europe. European shares also edged lower on Monday, with the broader STOXX 600 down 0.1% as investors assessed the impact of higher energy prices.

Acciona and ACS lead IBEX 35 gainers

Acciona was the strongest performer among the IBEX 35 constituents, climbing 2.95% or 6.00 points to close at 209.20. ACS Actividades de Construccion y Servicios gained 1.76% or 1.80 points to finish at 103.90.

Solaria Energia y Medio Ambiente also advanced, rising 1.75% or 0.30 points to 17.12. The gains in construction and renewable energy stocks helped limit the broader decline in Madrid.

Despite the IBEX 35's modest loss, the market remained relatively weak overall. A total of 122 stocks fell on the Madrid Stock Exchange, compared with 68 that advanced, while 18 ended unchanged.

Colonial, Indra and Amadeus lead declines

Inmobiliaria Colonial was the biggest decliner among the major IBEX 35 movers, falling 2.45% or 0.13 points to 5.18. Indra A dropped 2.36% or 1.40 points to close at 57.90.

Amadeus IT also came under pressure, declining 2.33% or 1.34 points to 56.26. The weakness in technology and consumer related sectors was a major drag on the Spanish benchmark.

The broader European market faced similar pressure as investors reacted to another rise in crude prices. Brent crude climbed above $97 a barrel, while WTI crude traded around $93 a barrel. Higher energy costs can feed into inflation, potentially keeping central banks more cautious about cutting interest rates.

Oil rises while gold and dollar fall

Oil was one of the biggest moves outside the equity market. October crude futures rose 1.83% to $93.15 a barrel, while November Brent gained 1.46% to $97.69.

Gold futures moved lower, with December contracts falling 0.36% to $4,460.34 per troy ounce. The US Dollar Index also declined 0.28% to 98.87.

EUR/USD was little changed around 1.16, while EUR/GBP remained around 0.86.

For Spanish stocks, the immediate focus remains on energy prices and their impact on inflation expectations. With the European Central Bank facing renewed pressure from higher oil prices, movements in crude could remain an important driver for European equities in the coming sessions.