AIRLINK 189.36 Increased By ▲ 1.33 (0.71%)
BOP 11.10 Decreased By ▼ -0.76 (-6.41%)
CNERGY 7.28 Decreased By ▼ -0.26 (-3.45%)
FCCL 36.65 Decreased By ▼ -1.14 (-3.02%)
FFL 14.95 Decreased By ▼ -0.29 (-1.9%)
FLYNG 26.19 Increased By ▲ 0.66 (2.59%)
HUBC 130.89 Increased By ▲ 0.74 (0.57%)
HUMNL 13.47 Decreased By ▼ -0.14 (-1.03%)
KEL 4.28 Decreased By ▼ -0.07 (-1.61%)
KOSM 6.08 Decreased By ▼ -0.09 (-1.46%)
MLCF 45.94 Increased By ▲ 0.26 (0.57%)
OGDC 201.86 Decreased By ▼ -4.57 (-2.21%)
PACE 6.12 Decreased By ▼ -0.26 (-4.08%)
PAEL 38.36 Decreased By ▼ -1.95 (-4.84%)
PIAHCLA 16.73 Decreased By ▼ -0.22 (-1.3%)
PIBTL 7.94 Decreased By ▼ -0.09 (-1.12%)
POWER 9.86 Decreased By ▼ -0.17 (-1.69%)
PPL 173.46 Decreased By ▼ -5.38 (-3.01%)
PRL 34.73 Decreased By ▼ -1.63 (-4.48%)
PTC 23.95 Decreased By ▼ -0.44 (-1.8%)
SEARL 101.74 Decreased By ▼ -1.42 (-1.38%)
SILK 1.07 No Change ▼ 0.00 (0%)
SSGC 32.70 Decreased By ▼ -3.54 (-9.77%)
SYM 17.93 Decreased By ▼ -0.30 (-1.65%)
TELE 8.14 Decreased By ▼ -0.24 (-2.86%)
TPLP 12.02 Decreased By ▼ -0.14 (-1.15%)
TRG 67.40 Increased By ▲ 0.07 (0.1%)
WAVESAPP 11.80 Decreased By ▼ -0.21 (-1.75%)
WTL 1.52 Decreased By ▼ -0.05 (-3.18%)
YOUW 3.90 Increased By ▲ 0.01 (0.26%)
BR100 11,819 Decreased By -87.9 (-0.74%)
BR30 35,000 Decreased By -554.1 (-1.56%)
KSE100 112,085 Decreased By -478.8 (-0.43%)
KSE30 34,946 Decreased By -148 (-0.42%)

LONDON: European stocks slid 2.1% on Tuesday as soaring energy prices stoked inflation worries, sending the euro sinking on recession concerns, while German utility Uniper extended its tumble amid worries about its bailout.

The continent-wide STOXX 600 index marked its worst session in over two weeks. Losses were largely broad-based and led by oil and gas stocks and miners.

European gas prices jumped after Norwegian offshore workers began a strike on Tuesday in a move that hurt output and heightened worries about an energy shock.

“It comes at a highly fragile time geopolitically, given that the EU is facing the threat that Russia will turn off the taps abruptly, potential plunging vital industries into crisis,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

Uniper shares slumped 9.5% as Germany prepared for the possibility of taking a stake in the country’s largest buyer of Russian gas, Handelsblatt reported.

Last week Uniper became the first German energy company to raise the alarm over scarce gas and soaring prices. The government has warned that utilities could face a Lehman Brothers style collapse due to soaring energy prices.

Europe’s utilities index slipped 2%, while Germany’s DAX lost almost 3%.

A sliding euro further weighed on domestic stocks.

European Central Bank Vice President Luis de Guindos said on Monday the euro zone economy could suffer a recession if Russia cuts off gas supplies and industry had to adjust to a shortage of energy.

Tightening financial conditions are fuelling worries about a hit to economic growth and corporate profits. The STOXX 600 has shed almost 18% so far this year.

“We have been trimming European equity exposure for the past 4-5 weeks ago given the risk to GDP, currency and earnings. It all feeds into the idea of recession risks on the rise,” said Grace Peters, EMEA head of investment strategy at JPMorgan Private Bank.

Data showed business growth across the Eurozone slowed further last month, with forward looking indicators suggesting the region could slip into decline this quarter as the cost of living crisis keeps consumers wary.

Among other stocks, Remy Cointreau gained 4.6% after Jefferies upgraded the French spirits group’s stock to “buy” from “hold”, citing its positioning to navigate inflationary pressures facing staples.

SAS fell 10.2% after the Scandinavian airline filed for bankruptcy protection in the United States to help accelerate restructuring plans, warning strike action by pilots had impacted its financial position and liquidity.

Comments

Comments are closed.