European stocks plunge as sanctions worry traders

The FTSE 100 ended the day down 128.05 points, or 1.72%, at 7,330.2 points.

Looking across to the square mile financial district, London (John Walton/PA) (PA Archive)

Early hopes faded quickly in London as the city’s top markets plunged lower again as fighting continues in Ukraine.

Markets in London nevertheless made smaller losses than their counterparts elsewhere in Europe as defence giant BAE Systems once again helped provide some positive movement for investors.

The FTSE 100 ended the day down 128.05 points, or 1.72%, at 7,330.2 points.

Chris Beauchamp, chief market analyst at IG, said: “Defence spending is expected to increase substantially in this new fraught world, which has propelled BAE higher once again, while the ongoing rise in commodity prices has put miners on the front foot.

“But the appeal of the entire index seems to be on the wane, as the broader view on risk shifts back towards caution and away from the guarded optimism of last Friday.

“As the conflict intensifies, investors appear to be bracing themselves for tougher times ahead.”

Russian-linked firms Polymetal and Evraz were once again at the foot of the FTSE 100, with each dropping by more than a quarter and putting the firms at risk in the index’s latest reshuffle.

Elsewhere in Europe, the other main market tumbled as firms with Russian exposure had another dire day amid continued speculation over further sanctions.

The French Cac was down 3.94% and the German Dax was 3.85% lower at the end of the session.

Across the Atlantic, Wall Street followed the downbeat pattern to drop into the red but benefitted from the latest US manufacturing figures, which showed continued growth in February.

Meanwhile, sterling dipped against a strong US dollar, taking it down 0.28% against the dollar to 1.331, while it increased 0.05% against the euro to 1.199.

In company news, gambling giant Flutter stumbled after it revealed tumbling annual earnings after being hit by an “unprecedented” run of punter-friendly sports results.

The Paddy Power owner posted a 24% slump in underlying pre-tax profits to £620 million for 2021, despite revenues rising 17% on a constant currency basis to £6 billion.

Shares in the company dropped by 1,339p to 9,456p.

Elsewhere, Daily Mirror publisher Reach also plunged in value after it warned that higher printing costs are set to impact profits this year.

Reach, which also owns a raft of regional titles including the Manchester Evening News, revealed that inflation pressures had recently “intensified”.

The update shook investors and sent its stock 58.5p lower to 169p at the close of play.

Shares in British Gas owner Centrica fell as the company said it will exit its gas supply agreements with Russian counterparts, including Gazprom, following the invasion of Ukraine.

The move, which came after a raft of other UK energy firms including BP and Shell sought to sever Russian ties, resulted in a 2.88p fall to 74.4p per share.

The price of oil sprang sharply higher once against as UK fuel prices hit new record highs.

The price of Brent crude soared by 7.61% to 105.43 US dollars per barrel when the London markets closed.

The biggest risers on the FTSE 100 were BAE Systems, up 26.6p at 746.2p, Anglo American, up 132.5p at 3,955.5p, Antofagasta, up 50.5p at 1,571.5p and Rio Tinto, up 128p at 5,919p.

The biggest fallers on the FTSE 100 were Evraz, down 41.9p at 102.85p, Polymetal, down 92.3p at 258.9p, Flutter, down 1,339p at 9,456p and Rolls-Royce, down 11.5p at 92p.