Gas pipeline shutdown hits European markets

European stock indexes opened lower and the euro dropped below 99 cents for the first time in twenty years after Russia said gas supply down its main pipeline to Europe would stay shut.

Gas deliveries had been due to resume on Saturday but Russia scrapped this deadline and did not give a new timeframe for re-opening. The news reinforced expectations for a recession in Europe, as businesses and households are hurt by sky-high energy prices.

European gas prices jumped as much as 30 per cent on Monday.

Germany announced on Sunday around $65 billion of support to help protect Germans from soaring inflation.