Euro slumps to 20-year low against US dollar as jump in natural gas prices intensifies economic strain
European stock markets edged lower Tuesday, with concerns about the region’s economic recovery diluting the positive start to the new month. Worries that central banks around the world will push economies into recession in tackling rampant inflation sent investors running for cover during the first six months of the year, with the broad-based pan-European STOXX 600 down some 16% year to date. Helping the tone Tuesday was healthy economic data out of Asia, as China's June services activity expanded at the fastest in almost a year while Japan's service sector activity grew at the fastest rate in over eight years.
European stock markets edged largely higher Monday, starting the new week on a positive note despite the Wall Street holiday limiting activity. By 03:40 AM ET (0740 GMT), the DAX in Germany traded 0.1% lower, while the CAC 40 in France rose 0.5%, and the UK’s FTSE 100 climbed 0.9%. Global markets are trying to take a more positive view at the start of the second half of the year, after suffering sharp losses year-to-date as tightening government policies and rising living costs suggested an elevated risk of the global economy heading into a growth slowdown.