European stocks hit by new sanctions on Russia

Europe's stocks sank on Wednesday, weighed down by concerns that tougher sanctions against Russia could hurt the region’s economy despite news of a sharp rebound in US economic growth. Frankfurt's main DAX index lost 0.62 per cent compared with Tuesday’s closing levels to end the day at 9,593.68 points. London's benchmark FTSE 100 index shed 0.50 per cent to 6,773.44 points, while in Paris the CAC 40 tumbled 1.22 per cent to 4,312.3 points. Energy companies led the charge lower, after the United States and European Union agreed to expand restrictions against Moscow, targeting the Russian energy, defence and finance sectors. Russian markets, however, rallied around 2.0 per cent as investors breathed a sigh of relief that sanctions were not tougher. The ruble also gained 0.5 per cent to 35.56 to the dollar, and 0.34 per cent to 47.53 against the euro, according to AFP.