European shares extend selloff on soaring energy prices; recession fears

European shares extended losses on Tuesday as investors waited for a key set of economic data to gauge the health of businesses in a hyperinflationary environment, while fretting about soaring energy prices and a weak economic outlook.

The pan-European STOXX600 fell for a third straight session, down 0.2% to hover near one-month lows. Energy was one of the only few sectors in the black, rising 1% as crude prices rose on concerns over tight supply.

Benchmark gas prices in the European Union surged 13% overnight to a record peak, having doubled in just a month to be 14 times higher than the average of the past decade.

Russia will halt natural gas supplies to Europe via the Nord Stream 1 pipeline for three days at the end of the month.

European PMI data due later in the day is expected to highlight the damage being done to activity, with Germany seen deeper in contractionary territory.

German utility Uniper SE rose 3.2% after saying it would start producing electricity for the market at its Heyden 4 hard-coal-fired power plant as a three-day halt in Russia’s gas supplies to Europe may cause disruptions to power supply. (Reporting by Anisha Sircar in Bengaluru; Editing by Anil D’Silva)

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