European stocks climb despite Russia’s threat to cut gas supply

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Stock markets rose on Tuesday despite Russia’s threat to turn off the taps. Photo: Dylan Martinez/Reuters

European stock markets rose on Tuesday despite a warning from Russia’s top energy official that the country could cut off gas flows to Europe via the existing Nord Stream pipeline.

In London, the FTSE 100 (^FTSE) rose 0.6% after the open, while the French CAC (^FCHI) climbed 1.6% and the DAX (^GDAXI) rose 0, 9% in Frankfurt.

Alexander Novak, Russia’s deputy prime minister, said the Kremlin had “every right” to do so in response to Germany’s shutdown of the Nord Stream 2 gas link.

The move would drastically reduce supplies to the continent, as the EU gets around 40% of its gas and 30% of its oil from Russia.

Russia has further warned that the price of oil could soar to $300 a barrel if Western allies escalate their economic war against Russia by banning energy imports.

Michael Hewson of CMC Markets said: “In reality, Russia will have to work very hard to be truthful about everything it says given the way it has behaved in the humanitarian corridors over the past few days. Throughout the crisis, he has consistently lied about his intentions, which means it will be hard to take anything he says at face value.

Read more: UK faces biggest income squeeze since 1970s

Elsewhere, nickel jumped past $100,000 a tonne amid short pressure on the London Metal Exchange (LME). This week alone, the merchandise jumped $72,000. The LME suspended nickel trading on Tuesday.

It comes as UK households will be hit by a rise in the cost of living bigger than anything seen in a generation, according to the Resolution Foundation.

He predicts the income of a typical household will fall by around £1,000 this year once the effect of inflation is taken into account.

On the other side of the pond, S&P 500 futures (ES=F) rose 0.2%, Dow futures (YM=F) also rose 0.2% and Nasdaq futures (NQ=F) rose nearly 0.1% when trading began in Europe.

Last night, Wall Street suffered its biggest drop in more than a year as soaring oil prices threaten to push inflation even higher and slow the economic recovery.

Watch: US stocks slide, Nasdaq confirms bear market

The selloff sent the Nasdaq index into a bear market, down 20% from its all-time high, while the S&P 500 also posted its worst daily loss since October 2020 and its weakest close since June. ‘last year. Although both remain above their January lows.

Asian markets fell again on Tuesday as investors worried about the economic impact of the war in Ukraine.

In Tokyo, the Nikkei (^N225) fell 1.7% while the Hang Seng (^HSI) fell 1.4% and the Shanghai Composite (000001.SS) was down 2.4% on the day.

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