Euro slumps to two-decade low, oil tumbles as recession fears intensify

The euro sank on Tuesday to its weakest level against the dollar in almost 20 years while oil futures tumbled and bond prices rose as investors sought safety after the latest data fueled fears of a global economic slowdown.

Euro zone recession fears were exacerbated by concerns about an energy crisis in Europe and by Tuesday’s data, which showed a sharp slowdown in business growth in June, following Monday’s news of a seasonally adjusted May trade deficit in Germany versus expectations for a surplus.

Oil prices suffered their biggest daily drop since March on growing fears of a global recession and lockdowns in China that could slash demand.