European stocks opened lower after Russia launched a new territory offensive in Ukraine, while the World Bank lowered its global growth forecast citing the inflationary impact of the war.
The Stoxx 600 stock index fell 0.7 percent in early trade on Tuesday, while London’s FTSE 100 slipped 0.1 percent and Germany’s Xetra Dax fell 0.5 percent. In Asia, Hong Kong’s Hang Seng stock index fell 2.2 percent as worries about global growth coincided with a move by Chinese authorities to tighten regulations on the country’s lucrative live-streaming industry.
Ukrainian President Volodymyr Zelenskyy said on Monday, as key European markets were closed for the Easter holidays, Russia had concentrated a “significant part” of its armed forces in the eastern Donbass border region. The World Bank cut its forecast for global economic growth to 3.2 percent from 4.1 percent and forecast a contraction in Europe, which is vulnerable to sanctions on Russia and supply chain disruptions, which would push up energy and food prices.
Gold prices, which hit their highest level in a month on Monday as concerns over economic growth prompted investors to buy the haven asset, fell 0.2 percent to $1,974 a troy ounce in early European trade.
Brent crude fell 0.3 percent to $112.8 a barrel after rallying for the past four days.
Chinese tech stocks slid Tuesday as markets reopened on news that Beijing had tightened regulations on the country’s live-streaming industry.
The Hang Seng Tech Index, which tracks Hong Kong-listed tech companies, fell 3.5 percent, with notable losses for video platforms Bilibili, down as much as 11 percent, and Kuaishou, down 5.5 percent.
Investors looked to a week of corporate earnings on Tuesday for clues as the business community grappled with inflation and an uncertain growth outlook. Streaming group Netflix is due to release quarterly figures later on Tuesday, with analysts watching for whether a trend for UK households to cancel subscriptions to cope with rising living costs is replicated elsewhere.