European stocks careened lower on Monday on the threat of further sanctions against commodities production giant Russia over its invasion of Ukraine.
The Stoxx Europe 600
slumped nearly 4%, putting the index on track for its worst performance on the year, as commodity prices skyrocketed as U.S. Secretary of State Anthony Blinken said there were active talks about banning Russian oil imports.
Futures on the Dow Jones Industrial Average
fell 521 points.
Commodities, which saw the biggest spike in 50 years last week, kept surging, as Brent crude oil futures
leapt to $127 per barrel, and wheat
futures spiked by 7%.
“While the Russian aggression in Ukraine continues the risk of a further escalation keeps investors unsettled,” said Thomas Hempell, head of macro and market research at Generali Investments. “Price pressures are compounded by mounting risk of supply chain disruptions as Russian firms are cut off financially and cargo traffic is curtailed.”
Russia announced a limited cease-fire while continue to shell cities including Mykolaiv, which is about 300 miles south of Ukraine’s capital Kyiv.
Of the major regional indexes, the German DAX
declined 4.6%, the French CAC 40
declined 4.7% and the U.K. FTSE 100
Banks including Commerzbank
auto stocks including parts maker Faurecia
and travel stocks including package holidays company TUI
led the decline, while metals producers including Anglo American
and oil producers including Shell
dropped to $1.0877 from $1.0935.