European stocks extended losses at midday on Tuesday, as an intensified Russian military build-up towards the Ukrainian capital of Kyiv hit sentiment.
The pan-European Stoxx 600 was down 1.9% with all the French CAC down 3% and Germany’s DAX off by 2.8%. Meanwhile, US futures had swung to negative territory as satellite images showed a Russian military convoy north-west of Kyiv that stretched for about 40 miles.
Ceasefire talks between Russia and Ukraine on Monday failed to reach a breakthrough and negotiators have not said when a new round would take place.
The Russian rouble has collapsed as Western nations cut off access to global payment systems, with the country’s central bank forced to double interest rates on Monday.
Oil prices continued to hover around the $100 a barrel mark. Brent crude futures rose 2% to $99.88 per barrel but were still well below last week’s $105.79, reached after Russian troops crossed the border.
In equity news, shares in Polymetal continued to tank after Monday’s 56% fall, with the tarnished stock now down a further 26% as investors took flight.
The London-listed gold producer, about to be booted from the UK’s FTSE 100, is about to be dumped by Norway’s sovereign wealth fund as it divests Russian investments in the wake of sanctions.
Shares in Atos slumped after the French IT company’s full-year guidance missed expectations.
Shell fell back after early gains after the energy giant said it was dumping all its Russian operations, including a major liquefied natural gas plant.
Flutter slumped more than 13% as underlying annual profit fell after the gambling group was hit by a string of punter-friendly sporting results in the UK and Ireland.
Shares in meal kit company HelloFresh were down as annual profits fell.
Among the risers, German defence manufacturer Rheinmetall continued to rise as Berlin authorised the export of arms to Ukraine
chemicals maker Covestro gained 5% after saying it had more than doubled its 2021 core profit and expected upbeat earnings for 2022.
Shares of Austria’s Raiffeisen Bank traded 7.5% higher early, partly making up for a 14% drop on Monday.
