Europe's Gas Rally Tests Stock Market Winners and Losers

Europe's natural gas prices have surged to their highest levels in three years, causing stock-market professionals to reassess the potential winners and losers as winter approaches.

The continent is facing a supply shortage ahead of the peak demand season, which could fuel further price spikes. Prices have already risen over 80% from late June.

Energy producers are seen benefiting from the higher prices, as well as companies that are beneficiaries of greater inflation. However, industrial firms and rate-sensitive sectors may face headwinds due to increased costs.