European Shares Sink on Fears of Russian Attack on Ukraine

European shares hit 20-day lows, with travel, banking, and auto stocks leading declines on Monday as investors feared political risks following warnings that Russia could invade Ukraine at any time.

The pan-European Stoxx 600 index was down 2 percent by 0808 GMT, its lowest since Jan. 25. All sub-indices of the sectors declined, with the travel and entertainment, banking, and auto sectors leading the declines.

The energy sector fell 0.5 percent and was the least declining sector after the oil price rose to its highest level in more than seven years.

Investors abandoned risky assets and moved to safe havens such as gold and government bonds after the United States warned that Russia could invade Ukraine at any time and could create a pretext to attack.

Swiss Clariant shares fell 16.5 percent after the chemical company postponed the release of its 2021 results due to an accounting investigation.

Commerzbank shares fell 7.5 percent after Germany’s finance minister said the government would not keep its stake in the bank in the long term.