LONDON —
Europe's major markets
tumbled Monday as fears intensified over a potential Russian invasion of
Ukraine, sending oil prices spiking.
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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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