German stocks fall as Ukraine strikes Russian convoy

The German stock exchange has fallen by more than 1pc mid-afternoon as Ukraine forces claim to have destroyed part of an armed Russian convoy that attempted to enter the country through a rebel held sector of the border.

The announcement shocked European stock markets sending them sharply lower and reversing gains on the German DAX index.

German global healthcare group Fresenius saw more than €350m wiped off its €19bn stock market value, pharmaceutical group Merck dropped 2.2pc, wiping almost €600m, off its €27bn value, industrial giant Thyssen Krupp dropped 1.7pc and fertiliser group K+S AG fell by more than 2pc in late afternoon trading.

^{Dax index: Source Bloomberg}

Investors concerns about the Ukraine crisis had been easing until today's slump. The German market was on target to record one of its biggest weekly gains of this year rising by more than 2pc.

Markets in Germany are still down more than 4pc so far this year after Washington targeted Russian companies, such as oil producer Rosneft, blocking them from raising money from US debt and equity markets. The punitive measures combined with sluggish economic growth across Europe have meant shares struggling to make ground this year.