European markets closed lower on Monday as investors ponder economic risks in the region, reignited by concerns about the energy supply from Russia.
European markets
The pan-European Stoxx 600 provisionally ended down 0.6%, having recouped some of its earlier losses. Autos plunged 4.8% to lead losses as most sectors and major bourses slid deep into negative territory. Oil and gas stocks bucked the downward trend to add 2% as prices spiked once more.
The sharp downward moves for risk assets came after Russia's state-owned energy giant Gazprom announced that gas flows to Europe via the Nord Stream 1 pipeline would be halted indefinitely, citing additional repair requirements. The euro fell sharply while European gas prices soared.
European stocks had advanced on Friday to round out a bruising week, as investors reacted to a key U.S. jobs report which showed the American economy added 315,000 jobs in August. The figure was just below the Dow Jones consensus estimate of 318,000, while the unemployment rate rose to 3.7%, slightly above expectations of 3.5%.
The reading helped cool market fears that a much more buoyant labor market would give the Federal Reserve license to hike interest rates much more aggressively as it tries to rein in inflation.
Overnight in Asia-Pacific markets, shares were mixed as investors digested the results of a private survey on Chinese services activity which showed the sector grew in August.
U.S. markets are closed Monday for the Labor Day holiday.