Stock indices of the largest Western European countries started the week with a negative mood amid a surge in natural gas prices after the shutdown of the Nord Stream 1 gas pipeline, MarketWatch writes.
The composite index of the largest enterprises in the Stoxx Europe 600 region decreased by 1.4% by 12:08 Moscow time and amounted to 410.07 points.
The German DAX indicator fell 2.7% from the market opening, the British FTSE 100 – 0.9%, the French CAC 40 – 2%. Italian FTSE MIB lost 2.4%, Spanish IBEX 35 lost 1.8%.
Among the leaders of the decline in quotations are shares of chemical companies and manufacturers of cars and spare parts for them, including the French Faurecia (-6.1%) and Valeo (-7.5%), as well as the German Faurecia (-4.7%).
The price of shares of the German electricity producer Uniper SE collapsed by more than 10%.
The Swiss UBS Group AG refused to buy the American Wealthfront for $1.4 billion. The companies said they made this decision together, but did not give reasons. UBS shares are down 1.7%.
ArcelorMittal SA, one of the world’s largest steel producers, announced its intention to close two plants in Germany due to a sharp increase in electricity prices, as well as to stop the operation of an enterprise in Spain. The cost of the company’s papers fell by 3.7% at auction in Amsterdam.
British developers Countryside Partnerships Plc and Vistry Group Plc have agreed to merge. Vistry will pay £0.6 and 0.255 new shares for the competitor. Based on closing quotes on Friday, the total payout will be £2.49. Overall, Vistry valued the competitor at around £1.25bn ($1.44bn).
Countryside’s shares jumped more than 6% in early trading, while Vistry’s shares fell 0.3%.
Business activity in the service sector in Germany fell in August for the second month in a row, according to the Purchasing Managers’ Index (PMI), calculated by S&P Global. The indicator fell to 47.7 points compared to 49.7 points a month earlier.
The value of the index below 50 points indicates a weakening of activity in the sector.
Consolidated PMI fell to 46.9 points from 48.1 points in July.
Meanwhile, in the Eurozone as a whole, PMI of the services sector decreased in August to 49.8 points against 51.2 points a month earlier. The index fell below the 50 mark for the first time since March 2021.
Consolidated PMI in the euro area fell to 48.9 points from 49.9 points in July.
Retail sales in the euro area in July increased by 0.3% compared to the previous month, the European Union’s statistics office said. Analysts were expecting a 0.4% rise on average, according to Trading Economics. According to the revised data, in June the indicator fell by 1%, and not by 1.2%, as previously announced.
