Markets nervy over Russia-Ukraine conflict

Traders tried to decide how best to respond to rising tensions between Russia and Ukraine, with swings and uncertainty remaining strong.

The safe-haven of gold hit a six-month high, with an ounce costing 1,900 dollars (£1,396). One suggestion has been that any sanctions against Russia could include a ban on Russian businesses using US dollars.

A barrel of oil hovered up 1.6% to 95 dollars for Brent Crude – although it remains off recent highs from last week.

But the FTSE 100 leading index managed to ride out the wave intact, closing down 29.29 points, or 0.39%, at 7484.33.

By comparison, France’s Cac 40 lost 2% and Germany’s Dax 30 fell by 2.1%.

Sterling barely moved and a pound was worth 1.135 euros and 1.361 dollars as markets closed.

Danni Hewson, AJ Bell financial analyst, said: “Brent crude has hopped back up to over 95 dollars a barrel amidst concern about Russian plans after it said talks of a summit were premature.

“The stage is set for another volatile week as investors consider which stocks might be impacted if Russia does ratchet up the tension by sending troops into regions held by Russian backed separatists.”

It was individual companies that felt the force of the threat of war, with Russian-facing mining giants suffering hardest.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: “Worries are mounting that wide ranging sanctions would pummel the businesses and these concerns aren’t likely to ease, with the Kremlin saying there are no concrete plans for a summit yet in place.”

Polymetal International closed down 99p at 1,070.5p – a fall of 8.47%; and Evraz down 16.2p at 267p – a fall of 5.72%.

In company news, AstraZeneca helped the FTSE 100 stave off harder falls, with bosses giving a positive update on its breast cancer drug Enhertu with improved survival rates shown in late stage trials.

Shares closed up 349p at 9,150p.

Elsewhere, Edinburgh-based John Menzies is likely to be sold to a Kuwaiti company after bosses said they planned to accept a renewed offer of nearly £560 million.

The board said that NAS, a subsidiary of Agility Public Warehousing, had upped its bid for the company by around £90 million. Shares closed down 3p at 580p.

Bosses at warehouse and supply chain specialist Clipper Logistics also said they would accept a bid for the company from US rival GXO Logistics, valuing the firm at £943 million.

Shares closed up 103p, or 13.3%, to 880p.

Finsbury Foods, the manufacturer behind Weight Watchers branded cakes, revealed it saw record sales in the last six months of the year, but warned that prices are increasing for customers.

Revenues hit £166.5 million, up 9% on the year before, but the company faced higher costs sending pre-tax profits down from £7.4 million to £5.7 million.

Shares closed down 3p at 85.5p.

And Made.com revealed its chief executive had quit the business to look after his family. Philippe Chainieux said he would step down with immediate effect and be replaced by chief operating officer Nicola Thompson.

Investors took fright, with shares closing down 7.9p at 73.1p.

The biggest risers on the FTSE 100 were AstraZeneca up 349p at 9,150p; Hargreaves Lansdown up 20.5p at 1,298p; Fresnillo up 11p at 696.8p; Sage up 10.6p at 679.2p and B&M up 8.6p at 592.2p.

The biggest fallers down Polymetal International down 99p at 1,070.5p; Evraz down 16.2p at 267p; Coca Cola HBC down 110p down 2,315p; Scottish Mortgages down 46p at 969p and Ashtead down 150p at 4,628p.