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European stocks slump and natural-gas futures jump after Russia cuts off key gas pipeline

European stocks slumped, the euro fell and natural gas skyrocketed after Russia said it was cutting off gas supplies through the Nord Stream 1 pipeline indefinitely.

The announcement, which supplier Gazprom blamed on technical issues after a three-day maintenance period, was interpreted as a political move as Western countries moved to implement a price cap on Russian oil, the latest sanction after Russia’s invasion of Ukraine.

The Stoxx Europe 600
SXXP,
-0.62%

dropped 1.2%, with automakers and chemicals companies among the hardest hit.

Of the major regional indexes, the German DAX
DAX,
-2.22%

fell 2.7% and the French CAC 40
PX1,
-1.20%

lost 1.9%, while the oil producer heavy U.K. FTSE 100
UKX,
+0.09%

weakened by 0.7%.

Dutch TTF gas futures rocketed 26%. The euro
EURUSD,
-0.03%

fell 0.4% to $0.9916, having briefly fallen below 99 cents for the first time in 20 years.

The moves come with Wall Street closed for the Labor Day holiday. U.S. stock futures wavered , with the lead S&P 500
ES00,
+0.30%

contract down less than a tenth of a percentage point. That came after a rough close on Friday, when the Dow Jones Industrial Average
DJIA,
-1.07%

fell 338 points and the S&P 500
SPX,
-1.07%

declined 1.1%.

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