Title: European shares hit one-year low on prospect of Russia oil ban

Mar 07, 2022 03:50AM ET

By: AnalysisWatch

European stocks fell to a one-year low on Monday and Germany's blue-chip index appeared to have detected a bear market as Western countries consider banning Russian oil imports, raising the potential for broader inflation risks and a slowdown in economic growth.

The pan-European STOXX 600 index was down 2.4% at 03:12 ET. Germany's DAX index fell 3.7%, taking the index down more than 20% from its record high on 5 January and entering a bear market, according to reports.

Strong gains by London-based mining and energy firms partially compensated for falls in the FTSE 100, which tumbled 1.1%, while France's CAC 40 and Italy's FTSE MIB plunged 3.4% and 2.9% respectively.

Brent crude oil prices rose to nearly $130 a barrel, the highest since 2008, after US Secretary of State Anthony Blinken said the United States and its European allies were studying the option of imposing a halt on Russian oil imports.

European oil and gas stocks rose 3.4%, while shares of mining companies rose 3.7%, the only sectors to trade higher.

Retail, automotive, and banking stocks were the biggest losers, with losses between 5 % and 4.7 %.