Stock Europe showed a decline of 0.43-1.40% at the close of trading on Monday. The aggregate indicator of the STOXX Europe 600 region decreased by 0.50%. The Spanish IBEX 35 and the French CAC 40 lost about the same amount, falling by 0.43% and 0.60%, respectively. The Italian FTSE MIB (-0.95%) and the German DAX (-1.40%) lost the most. The UK FTSE 100 indicator remained at the same level.
The main reason for the concern of the bidders were reports regarding gas supplies from the Russian Federation to European countries. The fact is that, due to planned maintenance work on both branches of the Nord Stream, deliveries will not be carried out on it from July 11 to July 21. If the necessary volumes of gas are not supplied through other channels, then Europe may face a shortage of it.
Investors also expect the latest statistical data on inflation in the United States for the past month. According to analysts' forecasts, consumer prices increased by 8.8% year-on-year, which is 0.2% higher than the May level. This suggests that inflation is still at record levels over the past 40 years. Official data will be released on Wednesday this week.
If the rate of inflation growth does not decrease, the US central bank will be forced to increase the interest rate by another 75 basis points at the July meeting. Such drastic steps by the Federal Reserve cause concerns among bidders about a possible economic downturn in the global economy.
As for European countries, the possibility of a recession in the eurozone countries is estimated at 45% compared to last month's estimate of 30%. First of all, according to experts, the German economy will suffer, since it depends very much on Russian gas.
In the UK, the attention is focused on the political situation. Prime Minister Boris Johnson announced his resignation last week. To date, 11 representatives of the Conservative Party have already put forward their candidacies for the post of prime minister.
Among the components of the STOXX Europe 600 indicator, the largest increase in securities was noted by Scatec ASA with shares that rose by 5.2%. Sinch AB's quotes immediately dropped by 27.5%.
Due to the reduction of gas supplies from Russia, many European companies have suffered. More than others – the German company Uniper SE, which is engaged in the import of gas. It was forced to turn to the German government for state support. The value of its securities decreased by 14.4%.
Due to the deterioration of expectations regarding net profit for 2022 due to unfavorable economic conditions, Danske Bank AS securities lost 3.8% in price.
At the same time, the value of Dufry AG securities increased by 3.8% due to the announcement of the upcoming acquisition of the Italian company Autogrill SpA.
