German stock index closes lower on gas supply worries

Germany’s DAX index fell on Monday after Russia’s Gazprom said a new turbine shutdown would further reduce the volume of gas transported to Germany via the Nord Stream 1 pipeline, fueling fears about supply, while a mixed set of corporate balance sheets raised concerns about overall economic growth.

DAX returned gains it made earlier and ended lower after Gazprom said it was halting operation of another Siemens gas turbine at Nord Stream 1’s Portovaya compressor station, taking into account the engine’s technical condition.

“Uncertainty there still dominates… and it’s hanging over markets and stock prices so much because nobody really knows what’s going to happen,” said Stuart Cole, chief economist at Equiti Capital.

“We’re kind of in no-man’s land at the moment until the Fed’s decision is out of the way. Until we see firm signs that we are hitting rock bottom in the economic data, or that the Fed’s stance is shifting in favor of a more ‘dovish’ (flexible in fighting inflation) tone, equity markets will continue to be under pressure.”

The pan-European STOXX 600 index closed up 0.13% at 426.25 points after having been left with no clear direction for the entire session.

Banks, which benefit from a high interest rate environment, rose 1.7% and helped major Spanish and Italian indexes advance, outperforming regional peers.

Creditors were followed by gains at oil producers and miners.

• In London, the Financial Times index advanced 0.41%, to 7,306.30 points;
• In Frankfurt, the DAX index fell 0.33% to 13,210.32 points;
• In Paris, the CAC-40 index gained 0.33% to 6,237.55 points;
• In Milan, the Ftse/Mib index appreciated by 0.80%, at 21,382.71 points;
• In Madrid, the Ibex-35 index registered an increase of 0.42%, to 8,085.60 points;
• In Lisbon, the PSI20 index rose by 1.10%, to 6,002.60 points.