European stocks pounded as oil spikes on possible ban on Russian imports

European stocks careened lower on Monday on the threat of further sanctions against commodities production giant Russia over its invasion of Ukraine.

The Stoxx Europe 600
SXXP,
-2.63%
slumped nearly 4%, putting the index on track for its worst performance on the year, as commodity prices skyrocketed in response to U.S. Secretary of State Anthony Blinken saying there were active talks about banning Russian oil imports.

Futures on the Dow Jones Industrial Average
YM00,
-1.34%
fell 521 points.

Commodities, which saw the biggest spike in 50 years last week, kept surging, as Brent crude oil futures
BRN00,
+6.44%
leapt to $127 per barrel, and wheat
W00,
+7.03%
futures spiked by 7%.

“While the Russian aggression in Ukraine continues the risk of a further escalation keeps investors unsettled,” said Thomas Hempell, head of macro and market research at Generali Investments. “Price pressures are compounded by mounting risk of supply chain disruptions as Russian firms are cut off financially and cargo traffic is curtailed.”

Russia announced a limited cease-fire while continue to shell cities including Mykolaiv, which is about 300 miles south of Ukraine’s capital Kyiv.

Of the major regional indexes, the German DAX
DAX,
-3.16%
declined 4.6%, the French CAC 40
PX1,
-3.10%
declined 4.7% and the U.K. FTSE 100
UKX,
-1.60%
dropped 2.1%.

Banks including Commerzbank
CBK,
-9.29%,
auto stocks including parts maker Faurecia
EO,
-7.34%
and travel stocks including package holidays company TUI
TUI,
-6.61%
led the decline, while metals producers including Anglo American
AAL,
+4.49%
and oil producers including Shell
SHEL,
+4.99%
advanced.

The euro
EURUSD,
-0.61%
dropped to $1.0877 from $1.0935.

Source: https://www.marketwatch.com/story/european-stocks-pounded-as-oil-spikes-on-possible-ban-on-russian-exports-11646642547?siteid=yhoof2&yptr=yahoo