Geopolitical worries weigh on European stocks

Chris Beauchamp IG

Stock indices tumbled thanks to signs of fresh tensions between Russia and the West, and natural gas prices made fresh gains, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

Fear index surges on geopolitical tensions

Today’s surge in the aptly nicknamed ‘Fear Index’ comes thanks to geopolitical tensions. Risk assets like stocks are not likely to enjoy a good day when the word ‘nuclear’ is being bandied around, and today was no exception. The Ukrainian use of US missiles on targets inside Russia caught European markets particularly hard, taking the already hard-hit CAC40 to a new three and a half month low. In London the FTSE 100 gave back its morning gains but has avoided any major losses.

Natural Gas makes gains

Natural gas prices were in vogue today thanks to the signs of further tensions between Russia and the West. Suggestions of sabotage in the disruption of a Baltic undersea cable reinforced the sense of a growing crisis, one that will hit European households particularly hard.

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Chris Beauchamp

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