LONDON, Aug 31 Reuters Stocks eased on Wednesday after Russia switched off a key gas tap to Europe, compounding fears of recession just as central banks on both sides of the Atlantic prepare to raise borrowing costs again next month.

Oil added to Tuesday39;s hefty losses, while the dollar was helped by strongerthanexpected U.S. jobs data underpinning expectations of a hefty interest rate rise next month.

The MSCI all country stock index was flat on the day and down 18.5 for the year. The STOXX share index of 600 companies eased 0.25, leaving it down about 14 for the year after rate hikes and war in Ukraine took their toll.

Economic news remained grim with overnight data showing that economic activity in China, the world39;s second largest economy, extended its decline this month after new COVID infections, the worst heatwaves in decades and struggles in the property sector.

Headline euro zone inflation for August is expected to show an acceleration to 9 yearonyear in data due at 0900 GMT.

Russia halted gas supplies via a major pipeline to Europe on Wednesday for three days of maintenance amid doubts it won39;t be switched back on, adding to worries of energy rationing during coming winter months in some of the region39;s richest countries.

The energy crunch has already created a painful costofliving crisis for consumers and businesses, and forced governments to spend billions to ease the burden. 

German bond yields were set to end August with their biggest monthly…