European Shares Fall 3% After Russia’s Invasion of Ukraine

European shares fell 3 percent on Thursday, as investors turned away from risky assets after Russia’s attack on Ukraine raised fears of war in Europe, contributing to inflation and hampering economic growth.

The pan-European Stoxx 600 index fell 2.9 percent, its lowest since May 2021.

Germany’s DAX index fell 3.7 percent to its lowest level since March 2021, suffering the biggest loss from a sell-off caused by concerns about Germany’s heavy dependence on Russian energy imports.

The rise in oil prices limited the losses of the British FTSE 100 index, which fell 2.4 percent.

The European oil and gas sector recorded the largest decline among sectors, and fell 1.2 percent, with an increase in oil prices by about six percent, which pushed Brent crude to rise above $100 a barrel for the first time since 2014.

The European banks most exposed to Russia, including Austria’s Raiffeisen Bank, Unicredit and Societe Generale, recorded a decline of between 5 and 6.6 percent, while the broader banking sector index fell by 4.2 percent.

The technology, travel and entertainment sectors also posted losses.