European shares continue their losses, affected by high energy prices and fears of recession

European shares extended losses on Tuesday as investors awaited an important batch of economic data to gauge the strength of companies in a hyperinflationary environment while rising energy prices and a weak economic outlook prevailed.

The pan-European Stoxx 600 index fell for a third straight session and fell 0.2 percent, hovering near a one-month low. The energy sector was among the few emerging sectors, rising 1% as oil prices rose, supported by concerns related to the lack of supplies.

Record gas prices in the European Union increased by 13 percent in the evening to record a new record high, after doubling in just one month to become 14 times higher than the average prices in the past decade.

Russia will suspend natural gas supplies to Europe via the Nord Stream 1 pipeline for three days at the end of the month.

The PMI data in Europe is expected to shed light on the damage to economic activity later on Tuesday, as deflation is expected to intensify in Germany.

Shares of German energy company Uniper rose 3.2 percent after it said it would start producing electricity for the market at the coal-fired Heiden 4 plant, fearing disruption to electricity supplies due to Russia’s three-day halt in gas supplies to Europe.