European stocks slumped on Monday, responding to a ratcheting up on sanctions against Russia as the Russian invasion of Ukraine continued.
The Stoxx Europe 600
fell 1.3% in early trade, as the financial sector reeled from the news the U.S., European Union and the U.K. agreed to block some Russian banks from the SWIFT messaging system.
The German DAX
and French CAC 40
each fell about 2%, while the U.K. FTSE 100
shares dropped 8%, while Deutsche Bank
and Societe Generale
each dropped 6%.
shares fell 5% as the oil giant said it’s taking a $25 billion charge to exit its 19.75% stake in Rosneft. Renault
the owner of Russian carmaker Avtovaz, dropped 8%.
There were notable defense gainers as Germany said it will set up a special €100 billion fund to upgrade its armed forces. Rheinmetall
shares jumped 44% and BAE Systems
The yield on the 10-year German bund
fell 6 basis points to 0.17%.