Early cautious optimism on European markets dissipated on Thursday as shares slipped into the red at the opening, as the growing impact of sanctions on Russia offset booming commodities prices.
The pan-regional Stoxx 600 index was barely moving the needle in early deals. Oil & gas shares were in focus as Brent rose above $118 a barrel as sanctions imposed on Russia over its invasion of Ukraine fuelled worries about supply disruptions.
Metals miners were also in demand as prices rose, with BHP, Glencore, Anglo American and Antofagasta all rising.
However, Russian gold miner Polymetal continued its headlong spiral, as the company lost another third in value. The shares have fallen from 806p before the invasion to 208p on Thursday.
The global community’s willingness to impose restrictions on Russian firms and oligarchs has shaken the country’s financial system, with the rouble plunging to record lows on currency markets.
In other equity news, shares in London Stock Exchange Group gained 8.5% after it said applying financial sanctions on Russia would have only a minor impact on its business.
Germany’s Lufthansa slipped 5.6% after the airline said it could not provide a detailed outlook for 2022 due to the war in Ukraine and the pandemic.
UK broadcaster ITV slumped almost 14% on concern about its spending plans, despite surging annual profit.
British insurer Admiral fell 7% after a bigger-than-expected loss at its international division.
Melrose Industries shares fell as the company shelved a planned payout to shareholders because of concerns caused by the invasion of Ukraine.
Telecom Italia shares plummeted 13.7% after a record loss and plans to split the company.
