Europe open: Stocks in the red as inflation, energy worries weigh
European stocks fell in early trade on Tuesday amid concerns about inflation and the energy crisis.
At 0850 BST, the benchmark Stoxx Europe 600 index was down 0.3%, France’s CAC 40 was 0.2% lower and Germany’s DAX was down 0.1%.
Neil Wilson, chief market analyst at Markets.com, said: "Inflation is soaring, energy prices in Europe are soaring and central banks are only going in one direction. US earnings have helped shore up the market but I would tend to say that it’s still not the time to fight the Fed as the macro setup remains so challenging.
"European stock markets have also pulled back in recent days as the whirlwind of red-hot inflation, a more hawkish central bank narrative and a looming - if not nascent - energy crisis pull on the nerves of investors everywhere. Last week the Fed gave the market a thorough gut check and made it clear that there would be no pivot - at least no time soon.
"With the Fed driving the market and the macroeconomic unclear, all eyes are on this week’s Jackson Hole symposium. The topic is ‘Reassessing the Constraints on the Economy and Policy’ - the new world order of higher rates, lower unemployment and getting a finger on what it is that is constraining the economy."
On the data front, all eyes will be on the S&P Global eurozone manufacturing and services PMIs for August at 0900 BST.
In equity markets, German utility Uniper gained ground after saying it will start electricity production 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.