Nord Stream 1, the largest single pipeline carrying Russian gas to Germany, began annual maintenance today and flows are expected to stop for 10 days, but governments, markets and companies are concerned that the shutdown may be extended due to the war in Ukraine.
The European Stoxx 600 index rebounded from 3 consecutive sessions of gains, to close down 0.5%, after recording last Friday’s best weekly performance in 7 weeks.
The shares of automakers exposed to China fell by 2.8%, to come at the forefront of the losing European sectors, and to push the German DAX index to close down 1.4%.
Mining stocks fell 1.9%, with metals and iron ore prices falling on fears that an increase in COVID-19 infections in China could lead to more restrictions.
Among the main losers in today’s session, German energy shares Uniper fell 14.4% with the company hit hard by a drop in gas supplies from Russia.
Investors are awaiting inflation data in the United States, which will be released next Wednesday, in search of more clues regarding the path of US interest rates, followed by the launch of the corporate earnings season for the second quarter of the year to guide companies’ performance amid high inflation and tightening financial conditions.
The Eurozone Banks Index fell 2.3%, following a sharp fall in bond yields in the region. However, the defensive sectors showed a coherent performance, and the index of utilities companies rose 1.3%.