The pan-European Stoxx 600 is down 2.7%, with bank stocks plunging 4.1% to lead losses as all sectors and major bourses slide into negative territory to start the week.
Multiple countries have urged their citizens to leave Ukraine amid fears of an imminent Russian invasion, with U.S. President Joe Biden warning over the weekend that the Kremlin has accelerated its extraordinary military buildup along the country’s border over the past 10 days.
Western leaders have threatened severe sanctions against Russia in the event of any incursion into Ukraine, as leaders continue to pursue diplomatic solutions.
Russian assets also retreated, with the MOEX Russia Index falling 3.4% and the RTS Index 4.9%. The U.S. dollar edged 0.2% higher against the Russian ruble.
Global markets have been in turmoil since a surprisingly high U.S. inflation rate of 7.5%, the highest level in 40 years, was announced last week.
Earnings continue to drive individual share price action in Europe, with Michelin (ML) and BHP (BHP) among the companies reporting before the bell today (February 14).
At the top of the European blue-chip index, steel and mining company Evraz surged more than 14%, leading only a handful of stocks into positive territory.
Shares in Asia-Pacific also pulled back, with Japan leading losses as investors assessed both Ukraine tensions and the worsening Covid-19 situation in Hong Kong. U.S. stock futures were also down sharply in premarket trading, with the Dow Jones Industrial Average down nearly 200 points.