CAC 40 Edges Lower Amid Worsening Energy Crisis

(RTTNews) - French stocks edged lower on Tuesday as investors fretted about a worsening energy crisis and strict COVID-19 curbs in Shanghai.

A major gas pipeline from Russia to western Europe shut down for annual maintenance on Monday and is scheduled to be out of action until July 21.

There are fears that the shutdown might be extended as the European Union prepares to impose a phased embargo on Russian oil and ban maritime insurance for any tanker that carries Russian oil.

Investors also await the release of a highly anticipated U.S. inflation report this week for clues about what the Federal Reserve may do next to fight inflation.

The benchmark CAC 40 was down 14 points, or 0.2 percent, at 5,982 after losing 0.6 percent the previous day.

Thales Group shares jumped 3 percent. The designer and builder of electrical systems announced its agreement to acquire OneWelcome, a Dutch provider of Customer Identity and Access Management for a total consideration of 100 million euros.

The transaction is expected to be completed during the second half of 2022, subject to regulatory approvals and other customary closing conditions.

Utility EDF surged 6 percent following a Reuters report that the French government will pay more than 8 billion euros ($8 billion) to nationalize the company.