LONDON, Sept 6 — European stock indexes fell yesterday, the euro dropped below 99 cents for the first time in twenty years and European gas prices surged after Russia said its main gas supply pipeline to Europe would stay shut.
Nomura economist George Buckley said it is uncertain how much the support packages from European governments will mitigate the energy crisis. The euro was trading around US$0.9925, down 0.3 per cent on the day. It slid during Asian trading hours and hit US$0.9876 in early European hours, its lowest since 2002.The European Central Bank meets later this week and is expected to deliver its second big rate hike in an attempt to combat inflation, which is running at more than four times its 2 per cent target.
The British pound was down around 0.1 per cent at US$1.15125, but slightly up against the euro at 86.275 pence.