It's early days but European markets are holding up better than feared after Nord Stream 1 was cut off. Share prices rallied around 3% on Friday but Gasprom made the announcement after the close and US ETFs indicated it would all be given back.
Instead there was this:
- Stoxx 600 -0.6%
- German DAX -2.2%
- FTSE 100 - flat
- French CAC -1.3%
- Spain IBEX -0.7%
- Italy MIB -2.0%
A big chunk of the optimism is the result of government policies to curb the impacts of high energy prices. Germany unveiled a €65 billion package on Sunday. That will essentially shift the burden of costs onto governments from consumers and businesses. The EU has also floated some schemes to ration and price electricity outside of markets.
So the question is: How much faith do you have in governments?
