Summary The price of gold -- widely considered a safe-haven investment -- was unchanged from Wednesday.
LONDON (AFP) - European stock markets sank on Thursday as investors worried over reports of increased Russian interference in war-torn Ukraine, dealers said.
By mid-afternoon, London s benchmark FTSE 100 index dropped 0.33 percent to 6,808.33 points and the Paris CAC 40 lost 0.50 percent to 4,373.28 compared with Wednesday s close.
Frankfurt s DAX 30 index shed 1.29 percent to 9,445.96 points, hit also as data showed German unemployment rose by 2,000 in August, dashing expectations for a decline of about 5,000.
"The stand-off between Russia and Ukraine has flared up once again with reports coming out of Kiev suggesting fresh military incursions across the border," said analyst Tony Cross at trading firm Trustnet Direct.
The price of gold -- widely considered a safe-haven investment -- was unchanged from Wednesday on the London Bullion market at $1,282.52 an ounce.
- Russia involved in Ukraine -
The United States accused Russia on Thursday of being "directly involved" in fighting in conflict-hit east Ukraine, after rebels appeared to seize swathes of territory from retreating government forces.
Ukraine has asked NATO for help.
"Keeping recent bullish sentiment in check is the blatant Russian-led offensive in Ukraine," added Capital Spreads analyst Jonathan Sudaria.
There has been increasing concern in Kiev and the West that Russia is sending troops into eastern Ukraine, although Moscow has repeatedly denied the allegations.
Germany s federal statistics office Destatis calculated German inflation in August stood just 0.8 percent year-on-year, unchanged from July. The preliminary flash estimate came after France announced unemployment had hit a record high last month.
Analysts said the statistics from the eurozone s two largest economies had also weighed on investors minds.
"Things seem to be going from bad to worse for the eurozone and as it stands, we re seeing no signs that this is going to change," said Craig Erlam, market analyst at brokers Alpari.
"There are a lot of things to be worried about at the moment and it appears, very few things to be optimistic about."
European stock markets had traded mixed on Wednesday, as investors paused after recent gains won on hopes of quantitative easing stimulus measures from the European Central bank.
In foreign exchange activity on Thursday, the European single currency rose to $1.3181 from $1.3195 late in New York on Wednesday.
The euro eased to 79.50 pence from 79.59 pence late in New York on Wednesday, while the pound rose to $1.6579 from $1.6576.
- Asia mixed before data -
Asia s markets mostly fell on Thursday, with investors unable to build on recent advances on the eve of key US second-quarter economic growth data.
Tokyo fell 0.48 percent, Sydney lost 0.47 percent, Shanghai gave up 0.62 percent and Hong Kong lost 0.71 percent, while Seoul finished on a flat note.
Global markets are however on a general uptrend as the US economy shows regular signs of getting back on track, in turn sending New York stocks to record highs.
On Thursday, US stocks opened sharply lower as Ukraine crisis worries surged, offsetting upbeat encouraging US economic growth and unemployment data.
The Dow Jones Industrial Average slid 76.69 points (0.45 percent) to 17,045.32, while the tech-rich Nasdaq Composite dropped 18.81 (0.41 percent) to 4,550.82.
The broad-market S&P 500 pulled back from Wednesday s record close, shedding 8.01 (0.40 percent) at 1,992.11.
