Oil prices earlier rose above $2 a barrel.
The European stock indices opened with losses today while the euro fell below 99 cents for the first time in 20 years after the Russia announced that the supply of gas from Nord Stream, its main pipeline to Europe.
Gas supplies were expected to resume on Saturday but Russia missed that deadline and gave no new timetable for opening the pipeline. The news boosted forecasts of a recession in Europe as businesses and households are hit by sky-high energy prices. European gas prices jumped up to 30% today. The benchmark gas price jumped to 272 euros per megawatt hour (MWh).
At 10:43 Greek time, MSCI’s global stock index, which tracks stocks in 47 countries, fell 0.5%. The pan-European STOXX 600 index fell 1.5%. Britain’s FTSE 100 fell 1.1% and Germany’s DAX fell 2.9%. The public holiday in US markets means lower liquidity is expected today.
The euro was earlier trading around $0.99185, down 0.4%. In Asian trading this morning it fell to $0.9876, its lowest level since 2002.
Eurozone government bond yields rose, with yields on Italian bonds moving towards 4%. The European Central Bank (ECB) meets later this week and is expected to go ahead with its second major rate hike in a bid to tackle inflation.
Meanwhile in the UK, Liz Truss is expected to be appointed as the country’s new prime minister later today. He is set to take over leadership at a time when the country is facing a cost of living crisis and recession.
The British pound was earlier down about 0.4 percent at $1.1476 but was flat against the euro at 86.405 pence.
Oil prices earlier rose above $2 a barrel as investors turn their attention to an OPEC+ meeting later today. After highs in March, oil prices have retreated on concerns that interest rates and COVID-19 restrictions in parts of China, the world’s top crude importer, may slow global economic growth.
RES-EMP
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