European shares closed flat on Tuesday, as geopolitical risks capped gains in the auto and travel sectors, with some Western countries imposing sanctions on Russia following it ordered its forces into two breakaway regions in eastern Ukraine.
The pan-European Stoxx 600 index ended the trading session unchanged.
The auto, travel and technology sectors were the top gainers, while shares of retail and financial companies were among the biggest losers.
Germany has frozen approval of a new Russian gas pipeline, and Britain has imposed sanctions on Russian banks as part of the West’s response to Moscow’s recognition of two breakaway regions in Ukraine.
The German DAX index was the top loser among the major European indexes, as Germany is seen as more vulnerable to damage due to its heavy dependence on Russian gas supplies.
Oil stocks fell 0.1 percent despite a jump in crude prices to their highest level since 2014, as investors fear higher commodity prices will fuel more inflation.
