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* Eurozone business growth slowed sharply in June - PMI
* Remy Cointreau climbs after Jefferies upgrade to 'buy'
* SAS shares slide after bankruptcy filing in U.S.
July 5 (Reuters) - European stocks slid 2.1% on Tuesday as
soaring energy prices stoked inflation worries, sending the euro
sinking on recession concerns, while German utility Uniper
extended its tumble amid worries about its bailout.
The continent-wide STOXX 600 index marked its worst
session in over two weeks. Losses were largely broad-based and
led by oil and gas stocks and miners.
European gas prices jumped after Norwegian offshore workers
began a strike on Tuesday in a move that hurt output and
heightened worries about an energy shock.
"It comes at a highly fragile time geopolitically, given
that the EU is facing the threat that Russia will turn off the
taps abruptly, potential plunging vital industries into crisis,"
said Susannah Streeter, senior investment and markets analyst at
Hargreaves Lansdown.
Uniper shares slumped 9.5% as Germany prepared for
the possibility of taking a stake in the country's largest buyer
of Russian gas, Handelsblatt reported.
Last week Uniper became the first German energy company to
raise the alarm over scarce gas and soaring prices. The
government has warned that utilities could face a Lehman
Brothers style collapse due to soaring energy prices.
Europe's utilities index slipped 2%, while Germany's
DAX lost almost 3%.
A sliding euro further weighed on domestic stocks.
European Central Bank Vice President Luis de Guindos said on
Monday the euro zone economy could suffer a recession if Russia
cuts off gas supplies and industry had to adjust to a shortage
of energy.
Tightening financial conditions are fuelling worries about a
hit to economic growth and corporate profits. The STOXX 600 has
shed almost 18% so far this year.
"We have been trimming European equity exposure for the past
4-5 weeks ago given the risk to GDP, currency and earnings. It
all feeds into the idea of recession risks on the rise," said
Grace Peters, EMEA head of investment strategy at JPMorgan
Private Bank.
Data showed business growth across the Eurozone slowed
further last month, with forward looking indicators suggesting
the region could slip into decline this quarter as the cost of
living crisis keeps consumers wary.
Among other stocks, Remy Cointreau gained 4.6%
after Jefferies upgraded the French spirits group's stock to
"buy" from "hold", citing its positioning to navigate
inflationary pressures facing staples.
SAS fell 10.2% after the Scandinavian airline filed
for bankruptcy protection in the United States to help
accelerate restructuring plans, warning strike action by pilots
had impacted its financial position and liquidity.
(Reporting by Devik Jain and Susan Mathew in Bengaluru, and
Sujata Rao-Coverly in London; Editing by Uttaresh.V, Arun
Koyyur, William Maclean)