TOKYO (AP) – World shares were rattled Thursday by reports the European Union is weighing stiffer financial sanctions against Russia.
A further pickup in China’s manufacturing in July failed to lift markets which have been unnerved the past week by Israel’s invasion of Gaza and the shooting down of a civilian jetliner over a part of eastern Ukraine controlled by pro-Russian separatists.
The Financial Times said EU diplomats are considering new sanctions against Russia, including a proposal to ban Europeans from purchasing new debt or stock issued by Russia’s largest banks. The report cited a memo prepared by the European Commission. The downing of the Malaysia Airlines jet, killing all 298 people on board, as heightened tensions between Russia and the West.
European markets opened lower, with Britain’s FTSE 100 slipping 0.4 percent to 6,774.13. France’s CAC 40 dropped 0.5 percent to 4,356 and Germany’s DAX shed 0.6 percent to 9,697.87.
Wall Street appeared poised for losses. Dow futures and broader S&P 500 futures were both 0.1 percent lower.