European Stocks Hit August Low on Russia-Ukraine War Worries
European equities declined for a third day, with the benchmark hitting the lowest level in more than three months amid concerns about an escalation of Russia’s war in Ukraine.
The Stoxx Europe 600 Index fell 0.4% to close at the lowest level since Aug. 12. Most industry sectors were in the red, with automakers and banks leading the decline. Italian shares underperformed, dragged down by the country’s biggest lenders. Defense stocks jumped, with Germany’s Rheinmetall AG gaining more than 3%.
Stocks turned negative after President Vladimir Putin approved an updated nuclear doctrine that allows Russia to expand its use of atomic weapons, days after the US gave Ukraine limited permission for long-range missile strikes on Russian territory. Government bonds rose along with other haven assets.
The benchmark index extended declines after news that the Ukrainian armed forces carried out their first strike in Russian territory with the ATACMS missile and Russia condemned the move. Selling pressure eased somewhat after the US indicated it wouldn’t respond to Russia’s change of stance.
Source : Bloomberg
