Sruthi Sankar, Susan Mathew & Bansari Maiur Kamdar

(Reuters] -European stocks fell Tuesday on the heels of disappointing earnings and jitters regarding the Ukraine crisis. Russia continued its aggressive attack upon the European market as ceasefire negotiations between the two countries failed to achieve a breakthrough.

The dollar, gold and bonds rose as investors sought safe havens. Oil prices rose to $100 per barrel.

Italy’s financially-intensive benchmark fell 4.1%, as banks lost 6.8%. Meanwhile luxury brands saw their shares drop 3.9% to hit five-month lows.

After ceasefire negotiations between Russia and Ukraine failed to achieve a breakthrough Monday, Russian rocket attacks on Ukrainian cities exacerbated recent losses.

The West placed tough sanctions against Russia on Monday, including stopping its central bank using the $630 billion foreign reserve war money. Stock markets around the world plunged after this.

The downside risks for Europe are greater than the upside because of the ongoing conflict. Craig Erlam is a senior analyst with Oanda. He said that sentiment will continue to plummet.

However, the pan-European index fell 1.7% but gains in miners and healthcare helped to limit them.

Travel and leisure sectors saw the largest drop, dropping 7.5% following disappointing earnings by Flutter betting group.

Erlam stated that the combination of high oil prices, rising energy costs and sanctions being imposed on airspace and their impact are significant headwinds for airlines and travel.

Shell Energy (LON 🙂 and Maersk Shipping (Maersk – both slipped up on Russia exposure and operations halting.

Following downbeat profits forecasts, the shares of pandemic winner HelloFresh (German online clothing retailer Zalando) and Zalando Zalando Zalando (7.8% and 9.6% respectively).

Index fell 3.9%

Europe Inc profits will likely have increased by 67.4% over the fourth quarter in 2021, according to data from RefinitivI/B/E/S on Tuesday. Higher oil and gas prices are helping the sector.

IHS Markit’s latest survey shows that momentum in manufacturing growth in the eurozone slowed slightly last month, but activity is still high and supply chain restrictions have eased.

German chemical maker Covestro saw 2.3% increase after it said that its core profits for 2021 had been more than doubled and that the company expects to earn higher earnings in 2022.

Rheinmetall was the top performer on STOXX 600, extending gains due to the possibility of significant increases in German military spending. In the six previous sessions, its shares have risen by close to 70%.

AstraZeneca, a drugmaker (NASDAQ:), rose 1.8% following a deal worth $760 million for an antibody-based medicine with Neurimmune in Switzerland.