European shares extend losing streak as investors fret about energy price surge

European shares slipped on Tuesday, extending their losing streak to a third session as investors fretted about soaring energy prices and a weak economic outlook.

Euro zone business activity contracted for a second consecutive month in August, new survey data showed, as the cost-of-living crisis forced consumers to cut spending while supply constraints hurt manufacturers.

Dublin

The Iseq nudged up 0.1 per cent, going against the failing trend across Europe as its biggest stocks posted gains, recovering losses incurred during Monday’s session.

Ryanair advanced almost 2 per cent to €12.48, while CRH edged 0.3 per cent higher to €37.90. Food group Glanbia rose 2.1 per cent to €12.81, while AIB, which suffered a loss of more than 5 per cent in the previous session, climbed 1.3 per cent to €2.12. Bank of Ireland dipped 0.35 per cent, however, to €5.74.

Can we finally say goodbye to shaming women for letting their hair go grey?

---

100 great restaurants and places to eat around Ireland this summer

---

Robert De Niro’s raging at Trump outside courthouse was an extraordinary moment in American public life

---

Midlands-North-West: Battle for final seat could end with a small party making a breakthrough

---

Smurfit Kappa also lost ground, with the packaging group finishing 1 per cent lower at €34.44. Glenveagh Properties was another faller, down 1.7 per cent at just under €1.06.

London

The mid-cap FTSE 250 closed down 1 per cent, hitting a fresh one-month low and marking a third consecutive day of decline, as soaring UK gas prices fuelled fears of surging inflation that has restrained the economy. A stronger pound weighed on the exporter-heavy FTSE 100, meanwhile, with the blue-chip index ending 0.6 per cent lower.

A closely-watched survey showed growth in Britain’s private sector slowed to a crawl in August as factory output fell and the larger services sector eked out only a modest expansion, adding to signs that recession may be looming.

The stronger pound weighed on stocks of pharma and consumer staple companies which make much of their revenue in dollars.

Among single stocks Wood slipped 2.4 per cent after the oilfield services and engineering firm reported a 5 per cent fall in core earnings from continuing operations in the first half.

Europe

The pan-European Stoxx 600 slipped 0.4 per cent, dropping to its lowest in almost a month. In Frankfurt the Dax dipped 0.3 per cent after data showed a deepening downturn in August, as companies saw demand weaken due to high inflation, rising interest rates and economic uncertainty.

Automotive stocks and banks rose 1.1 per cent and 0.3 per cent respectively, while energy led gains, rising 3.5 per cent as crude prices rose on concerns over tight supply.

Benchmark gas prices in the EU surged 13 per cent overnight to a record peak, having doubled in just a month to reach 14 times the average of the past decade. Russia will halt gas supplies to Europe via the Nord Stream 1 pipeline for three days at the end of the month.

Investors are concerned about the uncertainty ahead for European markets as it is feared the energy crunch could worsen.

Among stocks German utility Uniper rose 4 per cent 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.

New York

The tech-heavy Nasdaq edged higher in choppy early trading supported by mega-cap growth stocks on cautious hopes that the Federal Reserve will not be as aggressive in raising rates following weak US business activity data.

Private-sector business activity in the United States contracted for a second straight month in August, with particular softness in the services sector as demand weakened in the face of inflation and tighter financial conditions.

High-growth stocks such as Nvidia and Tesla rose more than 1 per cent each, while semiconductor stocks gained 1.4 per cent in midday trading.

Zoom Video Communications tumbled 14.8 per cent after the company cut its annual profit and revenue forecasts, while Macy’s rose 6.7 per cent after the retailer beat quarterly profit estimates.

Additional reporting: Reuters