Europe Movers: Assa Abloy, Aston Martin, Countryside Partnership, Volkswagen, Zurich Insurance

Bridgette Randall
05 Sep, 2022
Frankfurt

Benchmark indexes in Europe fell sharply on the first day of a week on the rising fears of natural gas rationing and the growing possibilities of a recession. 

Crude oil prices rose 3% after Russia halted natural gas shipments through Nord Stream 1 following the G7 finance ministers pledge to implement a price cap on Russia's energy exports. 

Brent crude oil rose $2.49 to $95.11 a barrel and natural gas prices soared as much as 20% but closed up 12.7% to 241.75 euros a megawatt hour. 

Moreover, market sentiment was dented after the eurozone retail sales rose less-than-expected and the private sector contracted for the second month in a row and Switzerland's second quarter economic growth slowed more than estimated. 

Retail sales in the currency union increased 0.3% in July after falling 1.0% in June, the region's statistics agency Eurostat reported Monday. 

Sales declined 0.9% from a year ago, slower than 3.2% decline in June. 

The S&P Global said activities in the eurozone declined after the private service sector contracted, joining the manufacturing sector in August.  

The final composite output index dropped to an 18-month low of 48.9 in August from 49.9 in July. 

The preliminary estimate or flash reading was 49.2.

The DAX index declined 2.2% to 12,760.28, the CAC-40 index dropped 1.2% to 6,093.22, but the FTSE 100 index rose 0.1% to 7,287.43.    

The euro weakened after energy prices surged and traded at a new low of $0.99. 

The British pound also edged lower to $1.15, weakest since March 2020, after rising energy prices worsened the outlook for the embattled currency. 

Zurich Insurance Group declined 1% to 430 Swiss francs after the company said it plans to exercise its option to redeem 450 million pounds of its subordinated debt. 

Assa Abloy AB decreased 1.5% to 214.40 Swedish kroner and the company said it agreed to acquire Brazil-based Control iD. 

Headquartered in Sao Paulo, Brazil, Control iD employs about 300 people and generated sales of 130 million Brazilian real or 250 million Swedish kroner  in 2021. 

Countryside Partnership PLC increased 5.2% to 240.12 pence after the company agreed to be acquired by Vistry Group PLC 

Based upon Vistry's Friday's closing price of 741 pence the merger represents a total implied value of 249 pence of Countryside Share, valuing the entire issued and to be issued ordinary share capital of Countryside at approximately