European stock markets slumped by 2.11-3.00% at the close of trading on Tuesday. The region's STOXX Europe 600 composite indicator lost 2.11%, while other indicators posted stronger declines. France's CAC 40 was down by 2.68%, FTSE 100 Index declined by 2.86% and Spain's IBEX 35 dipped by 2.50%. The DAX fell by 2.9% to a 20-month low. Italy's FTSE MIB lost 3%.

Investors are still concerned about the possible onset of an economic recession, as well as about a future energy crisis that could arise due to a significant increase in energy costs.

Thus, the price of gas in Europe jumped to $1,870 per 1,000 cubic metres yesterday after it was reported that Norwegian company Equinor had temporarily halted production due to strikes at several fields and that the Nord Stream pipeline was due for maintenance measures. It is also reported that gas supplies have been halted via the Yamal-Europe gas pipeline from Germany to Poland because of repair work.

Rising energy costs, however, are one of the most powerful drivers of inflation. To combat it, global regulators must use harsher measures with regard to monetary policy. According to experts, those measures are leading to a deterioration of the global economy. Their view was confirmed by yesterday's drop in the European currency and the decline in key US indicators.

In addition, oil prices fell sharply (by 10% at once) amid rising gas prices. Securities of companies involved in the industry also dropped in value. For example, BP shares plunged by 7%, Shell declined by 8.6% and TotalEnergies lost 6.4%.

The Euro-zone Purchasing Managers' Index (PMI) fell to 52 points last month from 54.8 points in May. In the services sector, the indicator also slipped to 53 points from 56.1 points in May.

In Germany, the PMI also showed a decline from 53.7 points in May to 51.3 points last month. As for the service sector, it dropped from 55 to 52.4 points.

In France, the situation was similar. The index fell to 52.5 points last month compared to 57 points in May. In the service sector, it slipped to 53.9 points from 58.3 points.

Among the companies included in the STOXX Europe 600 indicator, KGHM Polska Miedz S.A. (-11.8%), Rheinmetall AG (-10.4%) as well as Uniper SE (-9.4%) were the biggest losers.

After Supreme PLC reported a decline in revenues and profits in FY2022 due to lower demand, its securities plunged by 32%. Last fiscal year, it managed to increase revenues and profits by 7% and 9% respectively.

Equinor ASA's share price was down by 3.3% following a report that gas production at several fields had been suspended due to labour strikes.

AstraZeneca Plc shares dipped by 0.1%. The company announced a major forthcoming deal to acquire TeneoTwo, Inc. for a total amount of $1.27bn.

SAS AB dropped by 10% following reports that the company had filed for bankruptcy because of pilot strikes.

ProSiebenSat.1 Media SE was down by 6.9% after analysts at Goldman Sachs downgraded its shares from a neutral rating to a sell rating.

At the same time, J Sainsbury PLC's performance in the first quarter of the current fiscal year was in line with forecasts and its securities rose by 1.1%.

Shop Apotheke Europe NV reported a 14.7% year-on-year increase in sales in the second quarter to €287 million, adding 12% to its share price.