Stocks Slide on Ukraine Tensions, Wall Street Selloff
Global stock markets mostly sank on Monday, hit by fears over simmering Ukraine tensions -- and a painful pre-weekend selloff on Wall Street.
Asian indices mainly fell with investors' focus on the Federal Reserve's next policy meeting this week, where officials are expected to unveil their U.S. interest-rate plans to battle soaring inflation.
Bitcoin continued to struggle, having hit a six-month low at the weekend.
London stocks slumped by 1.2 percent at midday, while Frankfurt and Paris each shed 1.8 percent in early afternoon eurozone trade.
Economic growth in the eurozone and UK slowed sharply in January, key surveys showed Monday, as the Omicron variant hit consumer spending.
Geopolitical concerns surrounding Russia's military build-up on the Ukraine border also weighed on traders' minds.
"Ukraine conflict concerns, inflation worries and Covid woes hang over financial markets," said Hargreaves Lansdown analyst, Susannah Streeter.
"The threat of conflict breaking out on the doorstep is hanging over European indices, as hopes begin to fade that there will be fresh meaningful moves from diplomats."
Tensions have soared over Russia's deployment of some 100,000 troops and heavy armor at Ukraine's borders, despite the Kremlin's insistence it is not planning a new incursion.
It comes as the European Union draws up an emergency 1.2-billion-euro aid package for Ukraine.
- Wall Street slump -
Wall Street tumbled again Friday following a plunge in Netflix shares that sent the Nasdaq further into correction territory, spurring questions of just how far the market will fall.
Tech firms -- which soared on the back of the pandemic -- led the retreat in New York after weak subscriber figures from Netflix fueled concerns that the end of lockdowns and reopening of economies is seeing consumers changing their spending habits.
That comes as traders contemplate the end of the ultra-loose monetary policies put in place by central banks in early 2020 to cushion the impact of Covid-19 containment measures, with the Fed expected to start lifting interest rates from March.
Minutes from the Fed's December gathering indicated officials were turning more hawkish as they grow increasingly concerned about inflation, which is sitting at a four-decade high.
Commentators have tipped the first increase in borrowing costs in March followed by another three hikes before the end of the year, while the central bank is also forecast to start running down its vast bond holdings that have helped keep rates down.
The prospect of tighter policy has battered markets in recent weeks, with the Nasdaq in New York down about 15 percent from its recent peak -- tech firms are considered more susceptible to higher rates.
The S&P 500 is down more than eight percent from a record high touched at the start of the month.
Oil prices steadied Monday on optimism that demand will improve as countries reopen and the Omicron variant shows signs it may be peaking.
- Key figures around 1200 GMT -
London - FTSE 100: DOWN 1.2 percent at 7,406.45 points
Paris - CAC 40: DOWN 1.8 percent at 6,942.20
Frankfurt - DAX: DOWN 1.8 percent at 15,323.11
EURO STOXX 50: DOWN 2.1 percent at 4,141.84
Tokyo - Nikkei 225: UP 0.2 percent at 27,588.37 (close)
Hong Kong - Hang Seng Index: DOWN 1.2 percent at 24,656.46 (close)
New York - Dow: DOWN 1.3 percent at 34,265.37 (close)
Euro/dollar: DOWN at $1.1305 from $1.1344 late Friday
Pound/dollar: DOWN at $1.3489 from $1.3553
Euro/pound: UP at 83.81 pence from 83.70 pence
Dollar/yen: UP at 113.78 yen from 113.68 yen
Brent North Sea crude: DOWN 0.3 percent at $87.63 per barrel
West Texas Intermediate: DOWN 0.4 percent at $84.78 per barrel
Source: Agence France Presse
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