European shares slip as crisis in Ukraine deepens

European shares fell for a third straight session on Friday and was set to end the week lower, as the escalating Russia-Ukraine conflict kept investors cautious heading into the weekend.

Declines in financial and technology stocks countered gains in basic and defensive sectors, leaving the pan-European STOXX 600 index 0.2% lower.

On the week, STOXX 600 was set close about 0.4% lower, as lofty energy prices from sanctions on Russia fanned inflation fears and stoked worries about slowing economic growth.

The West imposed more sanctions on Russia on Thursday, and Washington was planning a response in the event that Moscow uses nuclear weapons.

Shares of Telecom Italia (MI:TLIT) jumped 5.9%, extending gains after KKR said it remains interested in taking over the phone group.