European stock markets (including PSI) fall sharply, driven by the energy sector

It was a negative day for European stock markets. The Stoxx 600 lost 1.47% and the EuroStoxx 50 fell 1.36% to 5,293.90 points.

The PSI closed down 1.71% to 7,677.58 points. EDP Renováveis ​​shares led the losses, falling 3.04% to €9.90. This was followed by EDP, which fell 2.13% to €3.726; and CTT, which lost 2.59% to close at €7.15.

REN falls -1.84% to 2.930 euros; Galp slides -1.56% to 16.44 euros; Mota-Engil falls -1.78% to 4.852 euros.

All 15 PSI stocks closed lower. The one that fell the least was Jerónimo Martins, which lost 0.75% to €21.18.

In Europe, the German stock index DAX lost the most, falling 2.3% to 2.29%, to 23,487.3 points. The CAC fell 0.70% to 7,654.25 points.

The Italian FTSE MIB fell 1.61% to 41,727.58 points and the British FTSE 100 lost 0.87% to 9,116.69 points.

The Spanish IBEX fell 1.57% to 14,704.2 points.

"European stock markets closed lower, with corrections across all sectors, including the Energy sector, which even saw a rise in oil prices," MTrader analysts highlighted.

"Bond issuance in Europe reached a record high, reaching $46.9 billion in a single day, with the United Kingdom and Italy financing themselves with large debt issuances. The rise in sovereign debt yields ended up being one of the session's determining factors," Millennium BCP analysts point out.

On a macroeconomic level, according to the preliminary consumer price index, inflation in the Eurozone rose from 2% in July to 2.1% in August, in line with analysts' expectations. The most notable change is core inflation, which excludes volatile food and energy components, which remained at 2.3%, when a slight decline was expected. This item is valued by the ECB, and higher-than-expected figures could dampen expectations of further interest rate cuts by the Central Bank.

In the US, the revelation that industrial activity eased its contraction in August, with positive signs such as a return to growth in new orders, was not enough to encourage investors. However, Wall Street continues to experience declines of more than 1% across all three indexes.

The ISM rose from 48 in July to 48.7 in August, showing an easing in the pace of contraction, although slightly lower than expected (analysts had estimated a reading of 49).

The big positive point was the return to expansion of new orders (reading went from 47.1 to 51.4, estimate was 48).

The employment reading component in the sector improved slightly, from 43.4 to 43.8, a lower improvement than expected by analysts (45), but which even works in favor of the stock markets, as it leads us to believe that less strength in the labor market will sustain lower inflation levels (due to its impact on consumption) and, consequently, downward movements in interest rates, according to MTrader.

The euro falls 0.50% to $1.1652.

Brent crude oil surges 1.25% to $69.

Today the President of the United States will make an announcement at 2 p.m. local time, 7 p.m. Lisbon time, and markets appear to be betting on an escalation of geopolitical conflicts.