Traders work in front of the DAX board at the Frankfurt Stock Exchange yesterday. The DAX index fell 1.12% to 9,462.56 points in yesterday’s trading.
AFP/London
European stock markets sank yesterday as investors worried over reports of increased Russian interference in war-torn Ukraine, dealers said.
Frankfurt’s main DAX index fell 1.12% to 9,462.56 points. London’s benchmark FTSE 100 lost 0.36%, ending on 6,805.80 points, while in Paris the CAC 40 slipped 0.66% to 4,366.04 points.
“The stand-off between Russia and Ukraine has flared up once again with reports coming out of Kiev suggesting fresh military incursions across the border,” said analyst Tony Cross at trading firm Trustnet Direct.
The price of gold — widely considered a safe-haven investment — was unchanged from Wednesday on the London Bullion market at $1,282.52 an ounce.
The US accused Russia yesterday of being “directly involved” in fighting in conflict-hit east Ukraine, after rebels appeared to seize swathes of territory from retreating government forces.
Ukraine has asked NATO for help.
“Keeping recent bullish sentiment in check is the blatant Russian-led offensive in Ukraine,” added Capital Spreads analyst Jonathan Sudaria.
There has been increasing concern in Kiev and the West that Russia is sending troops into eastern Ukraine, although Moscow has repeatedly denied the allegations.
Germany’s federal statistics office Destatis calculated German inflation in August stood just 0.8% year-on-year, unchanged from July.
The preliminary flash estimate came after France announced unemployment had hit a record high last month.
Analysts said the statistics from the eurozone’s two largest economies had also weighed on investors’ minds.
“Things seem to be going from bad to worse for the eurozone and as it stands, we’re seeing no signs that this is going to change,” said Craig Erlam, market analyst at brokers Alpari.
“There are a lot of things to be worried about at the moment and it appears, very few things to be optimistic about.”
European stock markets had traded mixed on Wednesday, as investors paused after recent gains won on hopes of quantitative easing stimulus measures from the European Central bank.
In foreign exchange activity yesterday, the European single currency rose to $1.3181 from $1.3195 late in New York on Wednesday.
The euro eased to 79.50 pence from 79.59 pence late in New York on Wednesday, while the pound rose to $1.6579 from $1.6576.
Global markets are however on a general uptrend as the US economy shows regular signs of getting back on track, in turn sending New York stocks to record highs.
Yesterday, US stocks opened sharply lower as Ukraine crisis worries surged, offsetting upbeat encouraging US economic growth and unemployment data.
The Dow Jones Industrial Average slid 76.69 points (0.45%) to 17,045.32, while the tech-rich Nasdaq Composite dropped 18.81 (0.41%) to 4,550.82.
The broad-market S&P 500 pulled back from Wednesday’s record close, shedding 8.01 (0.40%) at 1,992.11.
