European Stocks Hits Lowest in Nearly a Month on Looming Energy Crisis

European shares fell to their lowest level in nearly one 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 STOXX 600 Index lost 1%, hitting its lowest since July 28.

Russia will cut off natural gas supplies to Europe for three days at the end of the month, energy giant Gazprom announced, adding to the pressure on the continent as it tries to replenish its reserves before winter.

Uniper, Germany’s main importer of Russian gas, fell 7.7%, approaching a record low, while its parent company Fortum fell 4.4%. The German DAX index plunged 2.3%, in its worst session in almost seven weeks.

“Europe’s energy crisis is getting nothing but bad news overall. Heatwaves have strained supplies and it looks like any winter disruption could be devastating,” said OANDA’s Edward Moya.

The focus is on euro zone Purchasing Managers’ Index (PMI) data due on Tuesday and the minutes of the latest ECB monetary policy meeting due on Thursday.

After rising more than 11% from lows hit in mid-June, European markets have fallen in recent days amid investor concerns about the impact of accelerating inflation and tightening financial conditions on economic prospects.
 

- Reuters