Home News European stocks eye worst day in over a month on looming energy crisis
Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

European stocks eye worst day in over a month on looming energy crisis

by jcp

By Anisha Sircar

(Reuters) -European shares were on Monday set for their worst day in more than a month as worries about tightening gas supplies from Russia, hawkish signals from the European Central Bank and weak economic outlook weighed on investors’ minds.

The continent-wide STOXX 600 fell 1.1% in morning trade to touch its lowest level since July 28.

Russia will halt natural gas supplies to Europe for three days at the end of the month, energy giant Gazprom said on Friday, piling pressure on the continent as it seeks to refuel ahead of winter.

Germany’s top importer of Russian gas, Uniper, tumbled 8.1% to hover near record low, while its parent Fortum fell 3.7%.

“It’s clear that the euro zone economy could teeter into recession this winter dependent on whether energy stockpiles can last through the coldest months,” said Jane Foley, senior forex strategist at Rabobank. “Tomorrow’s August PMI data will provide a snapshot as to how the euro zone economy has been holding up recently.”

Focus is on euro zone flash purchasing manager index (PMI) data due on Tuesday, and minutes of the European Central Bank’s (ECB) last policy meeting on Thursday that are likely to sound hawkish. [O/R]

The ECB must keep raising rates even if a recession in Germany is increasingly likely, as inflation will stay uncomfortably high through 2023, Bundesbank President Joachim Nagel told a German newspaper.

Markets currently price in a 60 basis point hike for September and a combined 130 basis points of moves for the remainder of the year.

After rallying more than 11% since mid-June lows, European markets have sagged in the recent days as investors fret over the impact of soaring inflation and tightening financial conditions on the economic outlook.

Credit Suisse slipped 0.6% to a fresh record low. The Swiss lender appointed Deutsche Bank’s Dixit Joshi as chief financial officer and promoted EMEA chief Francesca McDonagh to chief operating officer.

French supermarket retailer Carrefour fell 1.7% after saying it would freeze prices on 100 of its products to help people tackle soaring inflation in the country.

(Reporting by Anisha Sircar in Bengaluru; Editing by Anil D’Silva and Dhanya Ann Thoppil)


You may also like

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More