European markets close down 1.8% with Ukraine, ECB in focus

LONDON — European stocks closed lower on Thursday amid a volatile week, as investors monitor the war in Ukraine and fluctuations in commodity prices

The pan-European Stoxx 600 dropped 1.8% during afternoon trade, with autos shedding 4.8% to lead losses as almost all sectors and major bourses slid into the red

The index closed 4.7% higher on Wednesday to notch its best day since March 2020, with commodity prices falling sharply from a recent surge and diplomatic talks between Russia and Ukraine in Turkey boosting global risk sentiment

U.S. stock futures pulled back in early premarket trade after the S&P 500 posted its strongest day since June 2020 during Wednesday’s regular trading hours

Markets have been closely attuned to developments in Ukraine as Russia’s invasion continues. Ukraine accused Russian aircraft late on Wednesday of bombing a children’s hospital in the besieged city of Mariupol despite a cease-fire deal to allow evacuations

Meanwhile, the Kremlin accused Washington of waging a de facto “economic war against Russia” after the Biden administration announced a ban on Russian oil imports. The U.K. has also vowed to phase out Russian imports by the end of the year

The European Central Bank on Thursday opted to keep interest rates steady, remaining cautious as it assesses the economic fallout from Russia’s invasion of Ukraine. But it announced that it will wind down asset purchases faster than planned, before adding that it stands ready to revisit this decision if the outlook changes

On the corporate front, Hugo Boss reported earnings before the bell on Thursday, while Credit Suisse released its annual report and Deutsche Bank presented its Investor Deep Dive

At the top of the Stoxx 600, German chemicals company K+S jumped more than 7% after reporting a surge in fourth-quarter profit and exceeding dividend and free cash flow projections

At the bottom of the European blue chip index, British housebuilder Persimmon slid 8%