European Markets Close Sharply Lower On Widespread Selling As Russia Invades Ukraine

European stocks tanked on Thursday after Russia declared a war on Ukraine late Wednesday night and launched a full-scale invasion.

While it was expected that Russia would be focusing on contested regions in the eastern part of the country, Russian President Vladimir Putin launched an all-out invasion of Ukraine.

U.S. President Joe Biden and other world leaders have condemned Russia for the “unprovoked and unjustified attack,” which Biden predicted would cause a “catastrophic loss of life and human suffering.”

“Russia alone is responsible for the death and destruction this attack will bring, and the United States and its Allies and partners will respond in a united and decisive way,” Biden said in a statement. “The world will hold Russia accountable.”

The U.S. and other countries around the world are expected to impose more severe sanctions on Russia following the invasion, potentially targeting the country’s all-important energy sector.

The pan European Stoxx 600 tumbled 3.28%. The U.K.’s FTSE 100 plunged 3.88%, Germany’s DAX dropped 3.96% and France’s CAC 40 plummeted 3.83%, while Switzerland’s SMI shed 2.56%.

Among other markets in Europe, Russia went down by over 33%. Poland crashed nearly 11%. Austria, Czech Republic, Finland, Greece, Iceland, Ireland and Turkey tumbled 3 to 8%.

Belgium, Netherlands, Norway, Portugal, Spain and Sweden lost 1 to 3%, while Denmark ended modestly lower.

Bank and autombile stocks were among the worst hit in the sell-off.

In the UK market, Polymetal International crashed 38% despite an announcement from the company that all its operations in Russia and Kazakhstan remained normal and the sanctions so far announced by the West have not affected the company.

Evraz plummeted 30.4%. Rolls-Royce Holdings, WPP, Mondi, Lloyds Banking Group and Standard Chartered lost 10 to 13%.

ABRDN, Hikma Pharmaceuticals, Melrose Industries, Barclays Group, Burberry Group, Schrodders, M&G, Imperial Brands and Airtel Africa plunged 7 to 9%.

BAE Systems and Fresnillo climbed 5.2% and 4%, respectively. Dechra Pharmceuticals and Anglo American Plc both gained about 1.75%.

In the German market, Deutsche Bank tanked 12.5%. Covestro, Continental, BMW, Porsche Automobil, Daimler, Volkswagen, HeidelbergCement, BASF, Henkel, Siemens, MTU Aero Engines and Brenntag lost 5 to 8%.

Bayer, E.ON, Adidas, Munich RE, Linde, Allianz, Merck, SAP and Infineon Technologies also declined sharply. HelloFresh gained about 1.25%.

In Paris, Societe Generale plunged more than 12%. Renault ended more than 9% down. Saint Gobain, BNP Paribas, Air France-KLM, ArcelorMittal, Credit Agricole, Veolia, Faurecia, Publicis Groupe, Danone, Engie, LVMH, Airbus Group and Kering lost 4 to 8.5%.

Thales SA shares rallied nearly 5% and Dassault Systemes gained about 1.5%.

In economic news, survey results from the statistical office Insee revealed French consumer confidence weakened slightly in February. The consumer confidence index unexpectedly dropped to 98 in February from 99 in the previous month. The score was forecast to rise to 100.

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