World markets plunge as Putin tightens Crimea grip

Stocks slid yesterday, with a global index of equities tumbling the most in a month, and the ruble dropped to an all-time low as Russia’s growing military presence in Ukraine prompted an emerging-market sell-off.

No major European stock market escaped the sell-off, with Germany's DAX particularly hard hit.

DUBLIN
The Irish market was also unable to escape the sell-off, which saw European stocks plunge the most in a month.

Shares in FBD Holdings fell 3.4 per cent to €18.18, after the insurance company reported a decline in profits and provided cautious guidance for 2014.

Bank of Ireland plunged 7.4 per cent to 36 cent after reporting a pre-tax loss of €569 million. One Dublin analyst put the decline down to a strong run by the bank's stock last week.

Paddy Power fared better than its peers in the UK, which fell by 3 per cent on average. The bookmaker was down 0.5 per cent to €60.33 and so had a reasonable day in comparison.

Aer Lingus was one of the bright sparks of the day, climbing 1.5 per cent to €1.66, with over 10 million shares traded.

The Iseq closed significantly lower, it shed 2.4 per cent to end the day on 5,069.

LONDON
Britain's top share index fell to a two-week low yesterday, led down by asset management firms as stocks most exposed to emerging markets fell on increasing tensions in Ukraine.

The possibility of war between Russia and Ukraine hit stocks that are particularly sensitive to optimism over global markets, such as fund managers Schroders and Aberdeen Asset Management , which fell 4.6 per cent and 4.3 per cent respectively.

Only five stocks were in positive territory, with precious metal mining companies Randgold Resources and Fresnillo the top risers, benefiting from a flight to safety that boosted the gold price. Randgold Resources added 4.3 per cent and Fresnillo , which produces gold and silver in Mexico, gained 1.9 per cent. The FTSE 100 was down by 101.35 points, or 1.5 per cent, at 6,708.35.

EUROPE
European stocks plunged the most in more than a month, retreating after reaching a six-year high last week, as investor concern increased that the escalating tension in Ukraine will hurt corporate earnings.

Companies with exposure to Russia led losses, with Carlsberg , owner of the country's biggest brewer, falling the most in more than a year. The Danish brewer fell 5.3 per cent.

Bouygues slid 1.8 per cent after a report that the French construction and telecommunications company may bid for Vivendi's phone carrier SFR.

ArcelorMittal , the world's biggest steelmaker, slipped 4.1 per cent to €11.

Metro retreated 5.4 per cent to €28.41. Germany's biggest retailer said on January 20th that it plans to proceed with an initial public offering of its Russian cash and carry business to raise money for expansion.

The Stoxx Europe 600 Index dropped 2.3 per cent to 330.36 at the close of trading, its biggest decline since January 24th. France's CAC 40 lost 2.7 per cent. Germany's DAX slipped 3.4 per cent, for its biggest drop since November 2011.

US
US stocks tumbled in early trading, tracking a global sell-off in equities, as investors sought havens on concern that Russia's military presence in Ukraine could lead to a larger conflict.

The S&P 500 had closed at a record high last Friday, and profit-taking was expected on Wall Street due to the political uncertainty. The index found some support when it fell to 1,840, but broke through it after the first attempt. The S&P 500 extended losses in early afternoon trading and recovered slightly to hover near the support level. General Electric and 3M plunged at least 1.7 per cent to pace declines among large industrial shares. Financial shares tumbled, as Visa and American Express slid more than 1.8 per cent. – ( Additional reporting: Bloomberg, Reuters )