European Shares Fall as Tension Grows After Russian Jet Downed

European shares dropped to one-week lows on Tuesday as mounting geopolitical tensions following the downing of a Russian warplane near the Syrian border pushed investors out of risky assets like equities.

Travel stocks were among the hardest hit following a U.S. travel warning, while sentiment was also depressed by disappointing updates from companies such as Zodiac Aerospace .

The pan-European FTSEurofirst 300 index closed down 1.3 percent after falling by as much as 2 percent. Last week the index touched a three-month high on ECB monetary stimulus hopes.

The STOXX Europe 600 Travel and Leisure index, was the top sectoral decliner in Europe. Its 2.3 percent fall came after the U.S. State Department issued a global alert for Americans planning to travel following deadly attacks in France and Mali, citing “increased terrorist threats”.

Source: Reuters

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