German DAX leads European stocks plunge after Russian gas cut

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The German DAX lost more than 2% and led the decline of European stock indices on Monday, after Russia stopped pumping gas to Europe through the Nord Stream 1 pipeline, sparking concerns about the rising energy prices and a shortage during the boreal winter.

* The pan-European STOXX 600 index closed down 0.6%, while the DAX fell 2.2%, its biggest daily percentage drop in more than a week.

* Gazprom (MCX: GAZP ) announced late on Friday that the main oil pipeline to Germany would remain closed indefinitely, against expectations of a restart on Saturday after three days of maintenance work.

* Shares in Germany’s biggest Russian gas importer Uniper (ETR: UN01 ) fell 11%, while its Finnish parent Fortum (HE: FORTUM ) lost 8.9% and the utility PNE, 4.1%.

* Uniper’s chief executive said Europe’s biggest economy could consider gas rationing, while Germany’s energy regulator said households would take precedence if Berlin triggers an emergency gas rationing plan.

* “If supply does not resume soon, winter gas rationing is increasingly likely, despite recent rising inventories and lower consumption,” economists at Commerzbank (ETR: CBKG ) wrote in a statement. note. “In that case, the recession that is already expected due to the huge rise in energy prices would be much more severe.”

* The STOXX 600 faces what could be a new round of selling pressure this week, as high inflation and increased bets of a big interest rate hike by the European Central Bank also added to the pessimism .

* Energy stocks were among the few gainers in Europe, rising 2.2% amid rising prices . European automakers fell 4.8%.

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