European Shares Retreat As Recession Worries Mount
(RTTNews) - European stocks tumbled on Monday, with fears of aggressive monetary tightening and concerns over Europe's energy crisis keeping investors nervous.
Russia will halt natural gas supplies to Europe for three days at the end of the month, state energy giant Gazprom said on Friday, deepening the energy crunch that's threatening to plunge the region into a recession.
Bundesbank President Joachim Nagel told German newspaper Rheinischen Post that inflation in Germany could hit a 70-year high of 10 percent this fall as Russian natural-gas supplies slow.
A recession appears likely next winter but the European Central Bank should continue increasing rates to tame inflation, he added.
Elsewhere, Richmond Fed President Thomas Barkin said on Friday that the "urge" among central bankers was towards faster, front-loaded rate increases.
Investors await minutes of the ECB's last policy meeting and Federal Reserve Chair Jerome Powell's key speech at the Fed's annual economic symposium this week for additional clues on the economic and rate outlook.
The pan European Stoxx 600 was down 1.1 percent at 432.47 after declining 0.8 percent on Friday.
The German DAX lost 1.8 percent, France's CAC 40 index shed 1.6 percent and the U.K.'s FTSE 100 was down half a percent.
Miners Anglo American and Antofagasta lost 1-2 percent on concerns about China's growth prospects.
Cinema chain Cineworld Group rallied 2.3 percent after confirming that it is considering a voluntary Chapter 11 filing in the United States.
Wizz Air Holdings, a Hungarian ultra-low-cost carrier, plunged 6.5 percent on news its chief financial officer Jourik Hooghe will be stepping down to pursue another opportunity.
German healthcare group Fresenius SE surged 6 percent on news that Chief Executive Officer Stephan Sturm will leave the company next month, and will be succeeded by Michael Sen, currently the CEO of subsidiary Fresenius Kabi.
Shares of its dialysis unit Fresenius Medical Care rose over 1 percent.
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