European Shares Fall to Their Lowest Level in Seven Months Due to The Ukraine Crisis

European shares fell in early trading on Tuesday to their lowest levels in seven months, as investors worried about the possibility of economic sanctions against Russia, which has ordered the deployment of troops in two breakaway regions in eastern Ukraine.

The pan-European Stoxx 600 index fell 1.7 percent, down for the fourth consecutive session. The index is down about 10 percent from its all-time high in early January.

The German stock index, the DAX, was more affected than other European indices by Germany’s heavy dependence on Russian gas supplies and the lack of energy companies listed on the index, which fell 2.2 percent.

The broader eurozone index fell 2.1 percent, while Britain’s FTSE 100 index fell 1.2 percent.

Investors are turning to relatively safe assets such as gold and government bonds, while the United States and its European allies are about to announce tough new sanctions against Russia.

While oil and gas stocks rose 0.7 percent, there were fears in the markets that rising commodity prices would increase inflation fears.

Auto stocks and banks were the worst performers among European stocks, falling 2.7 percent and 3.1 percent, respectively.