European stocks fall to one-month low as energy and inflation risks rise

  • European stocks fell for a second session as higher yields, inflation and energy-supply concerns pressured sentiment.
  • The STOXX 600 dropped 0.6% to 647.08, its lowest level in more than a month, while the Euro STOXX 50 fell 0.9% to 6,365.
  • Additional US-Iran strikes prolonged suspended Persian Gulf energy exports, while traders expected a 25-basis-point ECB rate hike this month.

European shares extended their decline on Tuesday as higher bond yields, euro zone inflation above 3% in August and renewed energy-supply disruptions heightened concerns about tighter financial conditions and weaker economic activity. The STOXX 600 fell 0.6% to 647.08, its lowest level in more than a month, while the Euro STOXX 50 declined 0.9% to 6,365. The FTSE 100 eased 0.3%, Germany’s DAX fell 1.1% and France’s CAC 40 dropped 0.4%. Additional US-Iran strikes prolonged the suspension of Persian Gulf energy exports, pushing fuel prices higher and reinforcing expectations that the European Central Bank will raise interest rates this month, with traders expecting a 25-basis-point increase. Energy stocks rose 1.8% as Brent crude traded above $92 a barrel, while Novartis gained 6.3% after reporting positive late-stage trial results for its oral multiple sclerosis drug remibrutinib.

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