Markets roiled by fresh US sanctions on Russia

Published on NewsOK Modified: July 17, 2014 at 11:03 am •  Published: July 17, 2014
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LONDON (AP) — Another round of U.S. sanctions on Russia weighed on markets Thursday. News that a Malaysia Airlines passenger plane carrying 295 had been shot down over Ukraine added to the negative tone.

Russia's MICEX index underperformed the world market, closing down 3.8 percent, a day after the latest round of U.S. sanctions, which targeted two major energy firms, a pair of powerful financial institutions, eight weapons firms and four individuals. The U.S. penalties are meant to increase pressure to end the insurgency in eastern Ukraine believed to be supported by Moscow.

"A fresh round of sanctions against Russia has wrong-footed the market today, and helped to remove some of the complacent momentum witnessed in equities," said Brenda Kelly, chief market strategist at IG.

In Europe, the FTSE 100 index of leading British shares closed down 0.7 percent at 6,738.32 while Germany's DAX fell 1.1 percent to 9,753.88. The CAC-40 in France ended 1.2 percent lower at 4,316.88.

In the U.S., the Dow Jones industrial average was down 0.3 percent at 17,094 while the broader S&P 500 index fell 0.5 percent to 1,972.

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