🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

European shares fall as Ukraine worries deepen

Published 03/24/2022, 06:04 AM
Updated 03/24/2022, 01:29 PM
© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, March 23, 2022. REUTERS/Staff
TLIT
-
STOXX
-
MBGAF
-
BAESF
-

By Susan Mathew and Bansari Mayur Kamdar

(Reuters) -European shares fell on Thursday, as the war in Ukraine entered its second month and Western countries bolstered Ukraine aid and expanded sanctions on Russia at a special NATO summit.

Western leaders meeting in Brussels agreed to strengthen forces in Eastern Europe, increase military aid to Ukraine and tighten their sanctions on Russia.

"The tone of the various meetings was uncompromising," said Michael Hewson, chief market analyst at CMC Markets UK.

The pan-European STOXX 600 index fell 0.2% by close after struggling for direction throughout the day.

Banks fell 0.7%, while retail stocks were led lower by a 3.3% drop in British clothing retailer Next after it trimmed its sales and profit forecast for 2022-23.

Nervousness was evident as investors scurried to sectors such as consumer staple stocks that are less impacted by economic crises.

After declining for two months on concerns about inflation, monetary policy and the Ukraine war, the STOXX 600's meagre gains so far in March are at risk going into the last week of the month.

Russian President Vladimir Putin said on Wednesday that Moscow would seek payment in roubles for gas sold to "unfriendly" countries, jolting gas prices in Europe and raising the risk of a supply squeeze.

"Putin's order may serve to lift energy prices, while also challenging central bank sanctions and impacting EU policy decisions," said strategists at UBS' Global Wealth Management team.

The Dutch European Central Bank Executive Board Member Frank Elderson said the ECB could still raise rates this year.

Among individual stocks, defence companies BAE Systems (OTC:BAESF) and Thales SA gained 1.9% and 1.7% respectively, while Rheinmetall jumped 8.9%.

Daimler (OTC:DDAIF) Truck rose 7.1% after it said it expected little impact on its business in 2022 from the COVID-19 pandemic and Russia's invasion of Ukraine, and forecast revenue growth of at least 14%.

Telecom Italia (MI:TLIT) gained 8.4% after Reuters reported that KKR remains interested in taking over the Italian telecoms group.

© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, March 23, 2022. REUTERS/Staff

Luxury goods group Richemont fell 2.1% after selling its entire 20% stake in Swiss watchmaker Greubel Forsey.

Meanwhile, Russia stocks climbed 4.4% as some trading resumed after a month-long hiatus. [RU/RUB]

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.