European stock markets slid Tuesday on fears of escalation in the Russia-Ukraine war after president Vladimir Putin broadened rules on his country鈥檚 use of nuclear arms, analysts said.聽
On the 1,000th day of Russia鈥檚 offensive on Ukraine, Moscow said it will consider using the weapons against a non-nuclear state if they are supported by nuclear powers.
Russia vowed also to defeat its neighbour.
鈥業nvestors are once again turning cautious on fears of further escalation,鈥� said Chris Beauchamp, chief market analyst at trading platform IG.聽
The Paris and Frankfurt stock markets were down nearly 1.5 per cent in midday deals. London fared better, with a drop of 0.4 per cent.
The dollar was mixed against main rivals, while there were gains for other investments seen as havens, notably gold and the yen.
Russia鈥檚 move comes days after the United States granted permission for Ukraine to strike Russian territory with American-supplied long-range missiles.
In Asia on Tuesday, Hong Kong and Shanghai stock markets closed higher on hopes China will unveil more stimulus aimed at kickstarting its聽economy聽and property sector in particular.
On the corporate front, shares in German industrial giant Thyssenkrupp rose about six per cent after the group said it expected a return to profit in its next fiscal year.聽
It comes after the group reported a massive annual loss for 2023-2024.
Nestle dropped 1.5 per cent after new chief executive Laurent Freixe announced a plan to slash costs and have a standalone water and beverages business.
Equities have seen big swings since Donald Trump was elected US president earlier this month, as markets weigh renewed inflation risks from his pledge to cut taxes and impose import tariffs.
That has also given a headache to policymakers at the US Federal Reserve who are still fighting to bring prices under control.
Traders are scaling back their bets on how many more interest-rate cuts the Fed will announce in the coming year.
There is also a fear that Trump鈥檚 second term will see another debilitating trade war with China as the country battles against slowing growth.
US stocks finished mixed Monday, with traders bracing for Nvidia earnings this week, and piling into Tesla on press reports that Trump could ease regulation on self-driving vehicles.