Financial markets already roiled by an Iran war-driven energy shock are facing another headache, as record temperatures across Europe are piling fresh pressure on food prices, supply chains and heavily indebted economies.
Here's how extreme heat is becoming a key macroeconomic indicator for investors.
Supply chain squeeze
Investors' supply chain worries have centred on the Strait of Hormuz and other trade routes disrupted by the Iran war. But Europe faces its own bottlenecks.
Major waterways, including the Rhine river, are suffering from exceptionally low water levels. Around 285 million metric tons of freight are transported on the Rhine each year, according to ING.
