European stocks plunged 3% on Thursday as investors dumped riskier assets after Russia attacked Ukraine, raising fears that a war in Europe will fuel higher inflation and derail economic growth.
The pan-European STOXX 600 index fell 2.9% - hitting its lowest since May 2021 while marking a correction or 10% decline from its January record high.
The German DAX fell 3.7% to March 2021 lows, bearing the biggest brunt of the sell-off on fears over the country's heavy reliance on energy supplies from Russia.
A surge in oil prices helped limit losses on the UK's commodity-heavy FTSE 100, which fell 2.4%.
Russian forces fired missiles at several cities in Ukraine and landed troops on its south coast on Thursday, officials and media said, after President Vladimir Putin authorised what he called a special military operation.
The United States and its allies will impose "severe sanctions" on Russia, U.S. President Joe Biden said.
Europe's oil & gas index fell the least among sectors, down 1.2% as oil prices surged about 6%, pushing Brent crude past $100 a barrel for the first time since 2014.
European banks most exposed to Russia including Austria's Raiffeisen Bank, UniCredit and Societe Generale dropped between 5% and 6.6%, while the wider banking index fell 4.2%.
Technology and travel & leisure were among the other top decliners.
Futures tracking New York's S&P 500 fell 2.0% and the tech-heavy Nasdaq 100 dropped 2.6%.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU