European Shares Retreat Amid Energy Crisis

European stocks fell on Monday as the euro held above parity versus the dollar, adding to worries that corporate profits could come under pressure.

Meanwhile, as Russia turns off Nord Stream 1, the biggest single pipeline carrying Russian gas to Germany for annual maintenance, Germany has warned that Moscow could halt gas flows permanently.

Flows are expected to stop for 10 days, but it is feared that the shutdown might be extended due to war in Ukraine.

Fresh COVID-19 curbs in China also weighed on sentiment as investors await U.S. inflation data due this week to gauge how aggressive the Federal Reserve will be in hiking interest rates.

The pan-European Stoxx 600 dropped 0.4 percent to 415.44, snapping a three-day winning streak.

The German DAX and France’s CAC 40 index both fell around 0.7 percent, while the U.K.’s FTSE 100 was down half a percent.

Danske Bank shares slumped 4.1 percent after the Danish lender revised its 2022 net profit outlook downwards, citing rising interest rates and unfavorable financial market conditions.

EDF shares rose 1.2 percent in Paris after Prime Minister Elisabeth Borne unveiled plans to nationalize the debt-ridden power company to address the country’s energy crisis.

Miners Anglo American, Antofagasta and Glencore fell 1-3 percent after the discovery of a new Omicron subvariant BA.5.2.1 in Shanghai.

Oil & gas firms BP Plc and Shell were down around 1 percent each.

Wizz Air tumbled 3.2 percent after it warned of flight curbs this summer due to labor shortages and strikes at European airports.

Go-Ahead Group, a public transport company, declined 1.5 percent despite saying it expects to report a good performance for the year ended 2 July 2022.

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