European markets lower as energy, growth fears take hold; euro at 20-year low
European markets were lower on Tuesday morning, tracking global sentiment as a fresh surge in European energy prices deepened fears of a recession and sent the euro to 20-year lows.
The pan-European Euro Stoxx 600 slid 0.2% in early trade with media stocks pushing the benchmark lower.
Benchmark gas prices in the European Union spiked 13% overnight, as damage to a key pipeline system running oil from Kazakhstan through Russia and into Europe disrupted supply.
The damage comes after Russia said it will stop gas supplies to Europe for three days at the end of the month due to an unscheduled maintenance order on its main Nord Stream 1 pipeline.
The euro sank back below parity with the dollar to notch a two-decade low and was trading at around $0.9915 shortly before markets opened in Europe on Tuesday morning.
Asia-Pacific markets retreated on Tuesday, taking cues from Wall Street after U.S. stocks closed out their worst session since June on Monday amid mounting concerns about more aggressive monetary policy tightening from the U.S. Federal Reserve.
U.S. stock futures were fractionally higher in early premarket trade, looking to arrest Monday’s broad-based sell-off.
Investor focus this week will be on the Fed’s economic symposium in Jackson Hole, Wyoming, with Chairman Jerome Powell set to deliver a speech on Friday addressing the central bank’s approach to taming inflation.
Back in Europe, investors will be keeping an eye on August flash PMI (purchasing managers’ index) readings out of the euro zone, France, Germany and the U.K., all due to be published throughout Tuesday morning.
The Euro Stoxx 600 Index slipped 0.3% in early deals with media stocks the biggest laggard. Shipping firm Maersk saw its shares dip 2.7% after a price target cut for Citi.
Oil stocks rose by 1% after some steady buying in the commodity markets on Monday afternoon. Both WTI and Brent crude were higher for the session on Tuesday morning.
