London, Wednesday, 14 September 2022
The benchmark Stoxx 600 fell 0.8% and Germany's DAX fell 1.2%, respectively, as a nearly 30% decline in the warehouse equipment maker KION Group's stock price followed a profit warning that it anticipated reporting a loss for the third quarter as a result of supply chain constraints and rising energy and material costs.
Additionally, the announcement that the German government is considering nationalising the utility giant caused Uniper shares to drop by over 18%.
The Spanish retailer Inditex, which reported a 24.5% increase in six-month sales and better profit, provided support for the retail sector, and energy shares closed higher as crude prices rose.
The president of the European Commission, Ursula von der Leyen, stated that the EC is proposing steps to decrease electricity use, a restriction on earnings of low-cost electricity generators, and debating a gas price cap. In the meantime, the energy crisis remained in the focus.
More than €140 billion is anticipated to be raised by the measures for member states to address the energy problem.
(Report by: The Decision Maker - Finance editors)