Coin Press - Eurozone stocks slide, gas prices soar

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Eurozone stocks slide, gas prices soar
Eurozone stocks slide, gas prices soar / Photo: Ina FASSBENDER - AFP/File

Eurozone stocks slide, gas prices soar

Eurozone equities sank Tuesday, as natural gas prices surged after Russia tightened the screw on supplies in fresh Ukraine fallout.

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Investors digested also major earnings updates on the eve of another likely large US interest rate hike aimed at tackling soaring inflation.

General Motors reported a big drop in second-quarter profits owing to a semiconductor shortage.

Google parent Alphabet, Coca-Cola, Microsoft and McDonald's are also publishing results Tuesday.

In Europe, stock markets "are under pressure as investors absorb what the news from Gazprom is likely to mean when it comes to gas supplies over the next few days", noted CMC Markets analyst Michael Hewson.

Europe gas reference Dutch TTF surged more than ten percent to 197.97 euros per megawatt hour, one day after Russia's Gazprom said it would cut daily gas deliveries to Europe via the Nord Stream pipeline.

Oil prices also leapt on concerns of a broader squeeze on global energy supplies, while the euro remained on the back foot against the dollar.

Gazprom will cut the gas deliveries to 33 million cubic metres a day -- about 20 percent of the pipeline's capacity -- from Wednesday.

That has heightened market worries over supplies during the northern hemisphere winter later this year.

At the same time, European Union member states have reached agreement on how to cut their consumption of gas by 15 percent and reduce their dependence on Russian energy.

Gas prices remain way below the record March peak of 345 euros struck after Russia launched its assault on Ukraine.

Markets.com analyst Neil Wilson predicted a "big push to fill (gas) stockpiles in what is left of the summer, at any price, to avert a winter crisis".

EU states have accused Russia of squeezing supplies in retaliation for Western sanctions.

Elsewhere Tuesday, Asian stock markets closed mixed.

Investors welcomed news that e-commerce giant Alibaba would seek a primary listing in Hong Kong, which could pave the way for it to be traded by mainland Chinese investors.

- Key figures at around 1100 GMT -

Frankfurt - DAX: DOWN 1.1 percent at 13,064.82 points

Paris - CAC 40: DOWN 0.7 percent at 6,196.57

London - FTSE 100: UP 0.4 percent at 7,335.10

EURO STOXX 50: DOWN 0.8 percent at 3,575.41

Tokyo - Nikkei 225: DOWN 0.2 percent at 27,655.21 (close)

Hong Kong - Hang Seng Index: UP 1.7 percent at 20,905.88 (close)

Shanghai - Composite: UP 0.8 percent at 3,277.44 (close)

New York - Dow: UP 0.3 percent at 31,990.04 (close)

Euro/dollar: DOWN at $1.0148 from $1.0223 Monday

Pound/dollar: DOWN at $1.1998 from $1.2046

Euro/pound: DOWN at 84.59 pence from 84.83 pence

Dollar/yen: DOWN at 136.59 yen from 136.65 yen

Brent North Sea crude: UP 1.3 percent at $106.47 per barrel

West Texas Intermediate: UP 1.9 percent at $98.56 per barrel

P.Schmidt--CPN