European stocks pounded as oil spikes on possible ban on Russian imports

Futures on the Dow Jones Industrial Average YM00, -1.24% fell 521 points.

Commodities, which saw the biggest spike in 50 years last week, kept surging, as Brent crude oil futures BRN00, +7.01% leapt to $127 per barrel, and wheat W00, +7.03% futures spiked by 7%.

“While the Russian aggression in Ukraine continues the risk of a further escalation keeps investors unsettled,” said Thomas Hempell, head of macro and market research at Generali Investments. “Price pressures are compounded by mounting risk of supply chain disruptions as Russian firms are cut off financially and cargo traffic is curtailed.”

Russia announced a limited cease-fire while continue to shell cities including Mykolaiv, which is about 300 miles south of Ukraine’s capital Kyiv.

Of the major regional indexes, the German DAX DAX, -3.81% declined 4.6%, the French CAC 40 PX1, -3.54% declined 4.7% and the U.K. FTSE 100 UKX, -2.24% dropped 2.1%.

Banks including Commerzbank CBK, -9.76%, auto stocks including parts maker Faurecia EO, -8.28% and travel stocks including package holidays company TUI TUI, -8.28% led the decline, while metals producers including Anglo American AAL, +4.48% and oil producers including Shell SHEL, +4.95% advanced.

The euro EURUSD, -0.61% dropped to $1.0877 from $1.0935.