Europe open: Shares fall on fears of Russia instability

European shares opened lower on Monday as investors fretted about political instability in Russia after an aborted “mutiny” by a former key ally of president Vladimir Putin.

The pan-European Stoxx 600 index was down 0.5% in early deals with all major bourses lower.

Oil prices made strong gains after the rebellion by Russian mercenaries led by Yevgeny Prigozhin sparked fears of a potential hit to oil supply from Russia.

‘’The weekend rebellion which rocked Russia has sent the price of oil higher, as traders assess the regime’s instability following the insurgency. Brent crude jumped by more than 1% before retreating a little, amid expectations of tighter supply,” said Susannah Streeter, head of money and markets, at Hargreaves Lansdown.

“Despite the sanctions by Western powers, Russia is still one of the world’s largest oil producers, with China and India key customers. Putin has been judged to be significantly weakened following the Wagner group’s actions and uncertainty has thrown light on potential production issues ahead if more unrest follows.”

In equity news, shares in SBB surged 18% as the Swedish property company said it was selling the remaining 51% of its education unit.

Reporting by Frank Prenesti for Sharecast.com