Global markets opened lower on Monday (5), amid a new chapter of the energy crisis in Europe.
Contrary to expectations, Russia did not meet the deadline for reopening the Nord Stream 1 gas pipeline, which takes gas to Germany and which, since last Thursday (1st), has been suspended due to maintenance. The new flow interruption comes at about the same time that a ceiling on Russian oil was agreed by the G7 countries, further limiting the supply of energy resources.
The situation puts more pressure on Europe, which faces escalating inflation and a dilemma over the European Central Bank’s (ECB) interest rate hikes. The euro zone authority is expected to raise the rate by 0.75 pp — which, on the one hand, can help fight inflation, and, on the other hand, could worsen the situation of the most indebted countries in the region.
Risk aversion intensifies with results from activity in Europe: the eurozone composite PMI recorded the worst level in 18 months, indicating that there was contraction in August for the second month in a row. In the UK, eyes are on the election of new prime minister Liz Truss, whose social policy to lessen the impacts of rising cost of living is aimed at lowering taxes, not aid for the British population.
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Source: CNN Brasil
