Europe’s energy concerns drag euro to 20-year low, stokes recession fears

SYDNEY (Reuters) – Asian shares were down for a sixth straight session on Tuesday after a renewed spike in European energy prices stoked fears of recession and pushed bond yields higher, while tipping the euro to 20-year lows.

Benchmark gas prices in the European Union surged 13% overnight to a record peak, having doubled in just a month to be 14 times higher than the average of the past decade.

Analysts at Citi warned inflation in Britain could top 18% if energy prices were not restrained.

European and British manufacturing surveys due later on Tuesday were expected to highlight the damage being done to activity, with Germany seen deeper in contractionary territory.