LIVE MARKETS-Volatility pops, STOXX drops

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VOLATILITY POPS, STOXX DROPS

The prospect of a possible escalation in trade tensions, along with growing angst over developments in Ukraine has raised the level of uncertainty, driving a spike in equity volatility and dragging European shares down from their peaks.

At the open, the euro STOXX volatility index .V2TX, an equivalent of Wall Street's so-called fear gauge VIX .V2TX, popped up above 20 points for the first time since the end of December, suggesting traders might be seeking shelter from turbulence.

The region-wide STOXX 600 .STOXX fell 0.6% with most sectors and 70% of its members below par. Blue chips were hit even further .STOXX50E, falling by 1.5%. Rate-sensitive plays like utilities .SX6P bounced back, aided by a fall in yields.

Defence .SXPARO hit a fresh record high after U.S. President Donald Trump paused military aid to Ukraine, but momentum eased a touch after a 7.7% surge the day before.

Here is your opening snapshot:

(Danilo Masoni)

EARLIER ON LIVE MARKETS:

BEFORE THE BELL: TARIFF WOES, DEFENCE POINTS HIGHER CLICK HERE

NEW TRUMP TARIFFS TAKE EFFECT, EU ALSO IN CROSSHAIRS CLICK HERE