European stock futures mixed amid renewed energy concerns
written by Bella Palmer
The DAX futures contract in Germany traded 0.2% lower, while CAC 40 futures in France climbed 0.3%, and the FTSE 100 futures contract in the U.K. rose 0.3%
European stock markets are expected to open in a mixed fashion Monday, as investors digest renewed regional energy concerns, political turmoil in the U.K., and worries about the health of Swiss banking giant Credit Suisse.
At 06:00 GMT, the DAX futures contract in Germany traded 0.2% lower, while CAC 40 futures in France climbed 0.3%, and the FTSE 100 futures contract in the U.K. rose 0.3%.
Russian energy giant Gazprom suspended its gas supplies to Italy over the weekend, in what appears to be the latest iteration of the conflict between Moscow and western Europe over the supply of natural gas since Russia's invasion of Ukraine in February.
Gazprom said it didn’t receive the authorization for the pipeline flows via Austria, while Eni, the Italian oil and gas company, said it expected the halt in gas flows to continue into Monday.
The European Union energy ministers announced plans on Friday to introduce windfall profit taxes on energy firms, and EU leaders are set to meet at the end of the week to discuss how to step up support for Ukraine and their joint next steps to tame soaring energy prices.
Elsewhere, the political turbulence in the U.K. continues.
Prime Minister Liz Truss attempted over the weekend to defend her government's plan to substantially cut taxes, including the removal of the highest income tax rate, despite the market upheaval it has spawned.
In corporate news, the Financial Times reported on Sunday that Credit Suisse executives spent the weekend reassuring investors about its financial health. This followed the bank’s credit default swaps, which offer protection against a company defaulting, rising sharply on Friday, climbing to the highest level in at least 10 years.
The main data release due Monday will be the latest German manufacturing PMI number, which is expected to show this sector of the Eurozone’s economic powerhouse had contracted further in September.
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