European shares fall in August amid record inflation

European shares tumbled on Wednesday and recorded a low on the balance for the month, with data showing that euro zone inflation hit another record in August, while energy worries intensified after Russia began to interrupt the gas flow to Germany via an important supply route.

The pan-European STOXX 600 index closed Wednesday’s session down 1.12% at 415.12 points and touched new six-week lows, extending its losses to a fourth straight session. Energy shares fell 2.6% and were in the bottom as oil prices continued to fall on recession fears.

The STOXX 600 registered a monthly decline of 5.1%, due to concerns about aggressive monetary policies by central banks and increasing risks of recession and energy rationing on the continent.

Eurozone inflation accelerated to a new record of 9.1% this month from 8.9% in July, beating expectations and further away from the European Central Bank’s (ECB) 2% target. The euro zone stock index fell 1.0% on Wednesday, hovering at six-week lows.

“This is yet another cry number and shows that consumers were feeling the pain even before Russia tightened its grip on the energy market,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

• In London, the Financial Times index dropped 1.05%, to 7,284.15 points;
• In Frankfurt, the DAX index fell 0.97% to 12,834.96 points;
• In Paris, the CAC-40 index lost 1.37%, at 6,125.10 points;
• In Milan, the Ftse/Mib index had a devaluation of 1.22%, to 21,559.32 points;
• In Madrid, the Ibex-35 index registered a drop of 1.17%, to 7,886.10 points;
• In Lisbon, the PSI20 index depreciated by 0.42%, to 5,995.24 points.