Monday September 5th


European markets sink as Russia halts gas flows; Stoxx 600 down 1%

U.S. markets are closed Monday for the Labor Day holiday. European markets fell sharply on Monday as investors ponder economic risks in the region, reignited by concerns about energy supply from Russia. The pan-European Stoxx 600 was down 1.2% by early afternoon in London, having recouped some of its earlier losses. Autos plunged 4.2% to lead losses as most sectors and major bourses slid deep into negative territory. Oil and gas stocks bucked the downward trend to add 1.7% as prices spiked once more. The sharp downward moves for risk assets came after Russia’s state-owned energy giant Gazprom announced that gas flows to Europe via the Nord Stream 1 pipeline would be halted indefinitely, citing additional repair requirements. The euro fell sharply while European gas prices soared. Shares in the Asia-Pacific traded mixed on Monday as the U.S. dollar strengthened sharply in Asia trade. Oil prices rose more than 2% ahead of an OPEC+ meeting slated to take place Sept. 5. The G-7 reached an agreement to put a cap on Russian oil prices over the weekend. Hong Kong’s Hang Seng index fell 1.1% in the final hour of trade, leading losses regionally with electric vehicle and tech stocks weighing on the index. In Japan, the Nikkei 225 slipped 0.11% to close at 27,619.61 and the Topix index was fractionally lower at 1,928.79. The Shenzhen Component in mainland China dipped 0.202% to 11,678.69, but the Shanghai Composite rose 0.42% to 3,199.91. In South Korea, the Kospi shed 0.24% to 2,403.68. Oil prices jumped more than $1 a barrel on Monday, extending gains as investors eyed possible moves by OPEC+ producers to tweak production and support prices at a meeting later in the day. Brent crude futures rose $1.43, or 1.5%, to $94.45 a barrel by 0054 GMT after gaining 0.7% on Friday. U.S. West Texas Intermediate crude was at $88.12 a barrel, up $1.25, or 1.4%, following a 0.3% advance in the previous session. U.S. markets are closed for a public holiday on Monday. Gold prices were flat on Monday, after jumping as much as 1.2% in the previous session, as cautious investors focused on the U.S. Federal Reserve’s rate-hike path following a mixed jobs data. Spot gold was unchanged at $1,611.48 per ounce, as of 0148 GMT. U.S. gold futures were flat at $1,722.50.