European stocks softened and government bonds dropped on Monday, as rising gas prices compounded questions about inflation ahead of US consumer price data later in the week.
The regional Stoxx Europe 600 share index fell 0.4 per cent in early dealings, taking it more than 4 per cent below its all-time high reached in late August before surging energy prices took the shine off an earnings rebound from a eurozone recession last year. London’s FTSE 100 traded flat.
European gas contracts for November delivery rose 7.5 per cent to €90 per megawatt hour, remaining below the record of €117.5 they hit last week before Russian president Vladimir Putin signalled that the country could increase supplies.