European shares fell to nearly a year lows on Friday, as the auto and banking sectors were hit by reports of a fire at a nuclear plant in Ukraine amid fierce fighting between Ukrainian and Russian troops.
The pan-European STOXX 600 index closed down 3.56% at 421.78 points, losing 7% for the week – its worst since a pandemic-driven sell-off in March 2020.
The index has already dropped more than 6% since Russia began its invasion of Ukraine last week, with Europe’s dependence on Russia for energy, as well as its proximity to conflict, hitting the continent more than other parts of the globe. .
Asian stocks have lost more than 4% over the same period, while Wall Street indices have recouped their losses, with the S&P 500 up nearly 2% since the invasion.
There was global alarm after Russian forces seized Europe’s biggest nuclear power plant, amid reports that a building in the complex, which is in Ukraine, had caught fire.
“The possibility that there could be a nuclear disaster was almost mind-boggling, and it kind of brings it up,” said Danni Hewson, financial analyst at AJ Bell.
Gold and bond prices, considered safe assets, jumped as investor fears mounted, with a measure of volatility in eurozone equities hitting 45 points for the first time since June 2020.
Eurozone banks lost 7.9% amid falling government bond yields, as soaring commodity prices – triggered by Western sanctions on Russia, a top exporting country – raised concerns about runaway inflation. and slowing economic growth.
The German auto-heavy DAX index closed down 4.4% to its lowest in more than a year, with automakers down 5.6%, ranking among the worst-performing stocks this week among sectors. Europeans.
- In London, the Financial Times index dropped 3.48%, to 6,987.14 points;
- In Frankfurt, the DAX index fell 4.41% to 13,094.54 points;
- In Paris, the CAC-40 index lost 4.97%, to 6,061.66 points;
- In Milan, the Ftse/Mib index had a devaluation of 6.24%, to 22,464.86 points;
- In Madrid, the Ibex-35 index registered a drop of 3.63%, at 7,720.90 points;
- In Lisbon, the PSI20 index fell by 2.49%, to 5,331.85 points.
Source: CNN Brasil
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