MONDAY MARKET CLOSE: Ukraine tension hammers world markets

Investor fears over Russia’s military intervention in Ukraine hit global markets with the FTSE 100 index falling almost 1.5 per cent.

Crude oil prices rose by more than $2 a barrel amid concerns of economic sanctions against one of the world’s major energy producers and gold futures jumped 2 per cent as heightened tensions over Ukraine sent investors scrambling for safer havens.

The Dow Jones fell by more than 210 points in early trading and European stock markets saw heavy losses with the German DAX, where many companies have significant exposure to the Russian economy, falling 3.3 per cent for its biggest one-day loss in almost two years. The Italian market lost a similar percentage with the Cac in Paris also more than 2.5 per cent lower.

The risk averse stance of markets meant only six top flight stocks in the FTSE 100 saw gains as the index fell 101.35 points to 6,708.35.

Aberdeen Asset Management was one of the biggest top flight fallers over concerns that political tensions will hit companies in the emerging markets it invests in. .

Shares in the wealth manager were down more than 4 per cent at 373.7p, while peer Schroders took a similar hit at 2,589p as tensions in the Ukraine spooked world markets.

Michael Hewson, chief market analyst at CMC, said: “The FTSE 100 has hit a two-week low with broad based losses. Amongst the worst performers was Aberdeen Asset Management over concern that its exposure to emerging markets may well see further reductions in assets under management as worried investors pull money out of the region.”

The main beneficiaries were precious metals miners as traders took refuge in gold and silver, pushing prices higher. Randgold Resources was up 206p at 4,953p and Fresnillo climbed 18.5p to 970p. Randgold was also fortified by a target price upgrade from broker Citi.

But other miners were suffering following disappointing economic figures from China over the weekend. Leviathan Rio Tinto lost 82p at 3,350.5p.

Energy company SSE fared relatively well as its exposure to renewable power generation offered an alternative to the flow of Russian gas supplies. Its shares were up for much of the session but eventually closed 7p lower at 1,396p. Coal-fired power station Drax was 1.5p higher at 807.5p.

Meanwhile investors decided to hedge their bets on bookmaker William Hill, which gave back its results day gains from last week. Shares in the firm, which posted a 6 per cent fall in pre-tax profits on Friday, slipped almost 5 per cent to 378.5p.