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Title: European Stock Futures Lower; Gas Prices, Economic Concerns Rise



Aug 23, 2022 01:56AM ET


By: AnalysisWatch


European stock markets are expected to open lower on Tuesday, continuing the previous session's steep declines, as investors worry that soaring inflation, soaring gas prices, and monetary tightening will trigger a regional recession.


German DAX futures fell 0.1%, French CAC 40 futures fell 0.1%, and UK FTSE 100 futures fell 0.2%.


Major European indices closed sharply lower on Monday, with the DAX down 2.3% and the CAC 40 down 1.8%, as bad news in the region continued to escalate, pushing the common currency to a new two-decade low.


Inflation is approaching double digits, the European Central Bank has begun a tightening cycle, and winter, with its looming energy shortages, is fast approaching.


Worryingly, the outlook could get even worse before any meaningful improvement in 2023.


Gasoline prices in the European Union rose again overnight as a key pipeline system transporting oil from Kazakhstan through Russia to Europe was damaged.


This comes ahead of Russian energy giant Gazprom, which halted deliveries through the key Nord Stream pipeline at the end of the month due to unscheduled maintenance work.


The Bundesbank said Monday in its monthly report that a recession in Germany, the eurozone's largest economy, is increasingly likely.

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