European stocks declined on Tuesday with attention still trained on the isolation of Russia from global financial markets after its invasion of Ukraine.
The Stoxx Europe 600
which ended just 0.1% lower on Monday despite heavier losses early in the day, skidded 2.4%.
German lender Commerzbank
and Irish carrier Ryanair
were among the companies seeing sharp declines.
The German DAX
and the French CAC 40
each fell nearly 4%, while the U.K. FTSE 100
lost 1.7%, as the index’s gearing to commodity producers helped limit damage.
While stocks struggled, bonds soared. The yield on Germany’s 10-year bund
turned negative for the first time in a month. The yield on the U.K. 10-year gilt
tumbled 26 basis points.
Heavy fighting continued in Ukraine, with the country’s second-largest city Kharkiv bombarded. Russia also said it was about to about making missile strikes on Kyiv, the capital. The Central Bank of Russia kept the local stock market closed for a second day after the U.S. barred transactions with it. The central bank on Monday lifted interest rates to 20% from 9.5%.
rose for a second day, gaining 18%, after Germany said it would spend €100 billion to boost its armed forces. Thales
and BAE Systems
also saw a second day of gains.
Oil companies including Aker BP
surged as oil prices