European Markets Drop 1%, Russia Suspends Nordstream 1 Gas Flow

Bridgette Randall
11 Jul, 2022
Frankfurt

European markets dropped on the natural gas supplies and fresh cases of coronavirus infections in Shanghai. 

The DAX index declined 1.5% to 12,824.28, the CAC-40 index fell 0.9% to 5,977.90, and the FTSE 100 index dropped 0.2% to 7,184.22. 

Energy stocks led the decliners after Russia turned off natural gas flow for a scheduled maintenance of the segments of Nordstream-1 pipeline. 

The gas flow is scheduled to resume after 10 days but the German government has warned that Russia could halt the flow permanently.  

Mining companies also declined after new cases of BA.5 subvariant infections in parts of Shanghai forced the city authorities to resume mass testing. 

Danske Bank declined 3.8% to Dkk 98.14 after the Danish bank lowered its fiscal year 2022 annual earnings outlook. 

The bank estimated annual earnings between Dkk 10 billion and Dkk 12 billion from the previous estimate between Dkk 13 billion and Dkk 15 billion released at the release of 2021 earnings on February 3. 

Electricite de France SA gained 0.9% to 9.65 euros after French prime minister Elisabeth Borne released the government's plan to fully nationalize the debt-ridden utility company and deal with the evolving energy crisis in France. 

Go-Ahead Group plc fell 2.2% to 1,536 pence despite the public transportation group  saying the "overall, the Group expects to report a good performance for the year ended 2 July 2022" and added regional bus division has reached 85% of passenger volume of pre-pandemic level. 

Wizz Air Holdings declined 3.6% to 1,790.95 pence and the ultra discount air carrier said summer flight schedule is going to be cut because of the ongoing labor shortages and strikes at several European airports.