| Powered by readers, open to all. | | | |  The financial markets are being rocked by the shutdown of Russia's Nord Stream1 pipeline, as the energy squeeze on European economies intensifies as winter approaches.
The euro has fallen to a two-decade low in early trading this morning, after Russian energy major Gazprom extended the shutdown of its gas pipeline to Germany on Friday evening.
Fears over sky-high energy prices, and possible shortages, pushed the euro further below parity against the US dollar. sending the single currency as low as $0.9879 against the US dollar for the first time in two decades.
Nord Stream 1 was due to restart operations on Saturday morning, after a three-day shutdown for maintenance. But Gazprom dashed hopes of a resumption on Friday night, blaming a leak.
As feared, European wholesale gas prices surged at the start of trading.
The benchmark Dutch TTF October gas contract has risen by 30%, up €62 to €272 per megawatt hours (MWh).
UK wholesale gas prices have jumped sharply in early trading too.
The contract for gas delivery next month has risen by 25%, to 513p per therm, towards the five-month highs of nearly 650p set last month.
Sterling is falling in early trading, hitting its lowest point against the dollar in almost 30 months.
The pound has dropped by half a cent to $1.1460, its weakest point against the US dollar since March 20th 2020.Below that point, it will be the weakest since 1985.
Naeem Aslam, chief markets analyst at Avatrade, says fears of an energy crisis this winter are hitting sterling and the euro: "We believe that the actual reason that we are experiencing such an intense sell for the Euro and Sterling is that traders are worried that as winter is approaching, the situation with respect to energy resources is going to become a lot worse. This is despite the fact that lawmakers in the EU and in the UK are trying their best to assure everyone that they have the situation under control and Russia cannot dictate their future.
"However, the reality is that a conflict with Russia has sent the energy prices through the roof in Europe and in the UK. Consumers are struggling every day and worried about their energy bills. There is no short fix for this, given the nature of the economic health of the EU and UK, and a major disaster could be on the horizon."
The agenda
• 9am BST: UK new car sales for August
• 9am BST: Eurozone service sector PMI for August
• 9.30am BST: UK service sector PMI for August
• 10am BST: Eurozone retail sales for July
• Noon BST: Opec meeting+ begins
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UK needs to be put on an economic war footing for the coming recession 
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