European markets were headed for a sharp decline on Monday as investors pondered economic risks in the region, rekindled by concerns over Russia’s energy supply. The pan-European Stoxx 600 fell 1.3% in early trade, with autos shedding 3.5% to lead losses as most sectors. and major stock markets slid deep into negative territory.
Oil and gas stocks bucked the downtrend to add 1.3% as prices rose once again. The sharp downward moves in risk assets came after Russian state energy giant Gazprom announced that gas flows to Europe via the Nord Stream 1 pipeline would be halted indefinitely. , citing additional repair requirements. European shares advanced on Friday to round off a strong week as investors reacted to a key US jobs report showing the US economy added 315,000 jobs in August.
The number was just below the Dow Jones consensus estimate of 318,000, while the jobless rate rose to 3.7%, slightly above expectations of 3.5%. raise interest rates much more aggressively while trying to curb inflation. Overnight in Asia-Pacific markets, stocks were mixed as investors digested the results of a private survey of Chinese services activity that showed the sector grew in August. US markets are closed on Monday for the Labor Day holiday.