European Markets Slip as Energy Surge Adds to Economic Pressure
European stock markets closed slightly lower on Monday (Aug 17) as rising energy prices once again added pressure to the region's economic outlook. The Euro STOXX 50 index fell approximately 0.1% to 6,530, while the STOXX Europe 600 declined about 0.2% to 656.
The primary pressure stemmed from a surge in European natural gas prices, which continued to hover near multi-year highs. Disruptions to LNG shipments from the Middle East exacerbated energy supply constraints, while renewable power generation remained limited across parts of Europe.
The energy situation was further complicated as low river levels forced some nuclear power plants to curtail or halt operations. These conditions heightened concerns regarding higher energy costs and potential additional inflationary pressure on the European economy.
Bond yields in several major economies also climbed to multi-decade highs, weighing on banking stocks and consumer-sensitive companies. Shares of Santander, Deutsche Bank, LVMH, and Adidas fell by between approximately 1% and 3.4%.
Conversely, technology stocks provided some support. ASML rose about 2.6%, buoyed by positive sentiment surrounding AI stocks in the US following strong results from Anthropic. Argenx also gained around 1% after reporting positive trial results for its drug Vyvgart.
Source: Newsmaker.id
