European equity markets extended losses in today’s trading session as investors remained cautious due to fairly weak European economic data, while the geopolitical risk on Russia/Ukraine continues to weigh on market sentiment.
The CAC, DAX and IBEX indices plunged between 1% and 1.65%, while the London benchmark managed to post limited losses after finishing the session around 0.55% lower.
The political and economic conditions between Russia and the West have deteriorated recently. Russia today announced a ban on most food imports from the European Union, the US, Australia, Norway and Canada.
ECB President Mario Draghi said that geopolitical risks continue to dominate the markets adding that the ECB is “ready to act”. The ECB and Bank of England kept interest rates unchanged today.
On the macroeconomic front, US weekly jobless claims fell to 289,000 in the week ending 1st August 2014, beating analysts’ expectations of 304,000. German industrial production rose slightly by 0.3% in June but missed estimates of a 1.2% rise. The euro remained under pressure trading near 1.33 against the USD, weighing further on market sentiment.