December 2 2022 3:17 PM E-paper Subscribe Sign in My Account Sign out

European stocks sink on Ukraine conflict fears

(Photo: Envato Elements)
LONDON — Europe's major markets tumbled Monday as fears intensified over a potential Russian invasion of Ukraine, sending oil prices spiking.اضافة اعلان

Frankfurt's DAX benchmark index dived 3.4 percent to 14,906.38 points and the CAC 40 lost 3.2 percent to 6,786.69 points in early morning trade.

Outside the eurozone, London's benchmark FTSE 100 index shed almost 2.0 percent to 7,510.68 points, following sharp losses across Asia.

"Worries that an invasion of Ukraine by Russia is imminent have pumped waves of volatility in markets, with investors expecting higher fuel prices and more supply chain bottlenecks as a result of the conflict," said AvaTrade analyst Naeem Aslam.

"President Joe Biden had a conversation with his Russian counterpart, President Vladimir Putin, but their dialogue failed to bear any fruit."

Wall Street fell heavily on Friday.

Fears of a conflict in eastern Europe also sparked a heavy selloff in Asia on Monday, while oil prices have rebounded sharply with Brent crude topping $95 per barrel — stoking fresh inflationary woes. 

The prospect of a conflict compounded the gloomy mood after data Thursday showed US inflation hit a forecast-busting 7.5 percent in January, ramping up pressure on the Federal Reserve to hike interest rates by more than expected.

"Just as the storm of COVID appeared to be receding, the growing expectation of an invasion of Ukraine is the fresh threat now unnerving investors, with confidence plunging in many parts of the world," said Hargreaves Lansdown analyst Susannah Streeter.

"With worries that inflation is already running far too hot, the possibility Russia troops could move across the border has led to another surge in the oil price to above $95 a barrel.

"Energy markets are clearly on edge and if supplies are threatened there is a risk oil will shoot up even higher, adding to price pressures for companies."

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