Europe open: Shares slip on Russia sanctions threat, Fed unwinding fears

European stocks were lower at the opening, tracking movements in the US and Asia overnight as investors fretted about the impact of further sanctions on Russia after allegations of civilian killings by its troops in Ukraine.

The pan-European STOXX 600 index fell 0.16% with all major regional bourses lower.

Comments on Tuesday from US Federal Reserve governor Lael Brainard and Mary Daly of the San Francisco Fed expressing worries over inflation ahead of meeting minutes to be released Wednesday, also concerned investors.

Brainard said she expected a rapid rundown of the Fed’s balance sheet combined with raft of interest rate rises this year, which indicated inflationary pressures were weighing more heavily on the central bank.

Germany’s DAX was flat despite data showing industrial orders fell more than expected in February on weaker overseas demand as supply shortages, spiralling energy prices hit manufacturing activity.

In equity news, shares in Danish wind turbine maker Vestas fell after the company said it would withdraw from Russia.

Shares in Imperial Brands rose as the company said it had made “good progress” in its strategic objectives this morning despite a weaker tobacco performance in Europe.