European shares and the euro fell on Thursday and investors retreated to safe-haven government debt after a stronger-than-expected move by Russia to ban certain imports from Europe and the United States, Reuters reported. Wall Street was higher in early trading after better-than-expected figures on weekly jobless claims. More broadly, MSCI's world equity index slipped 0.2 percent. German government debt yields fell to all-time lows, on increased concern over the effect Ukraine's crisis will have on euro zone growth. The European Central Bank said following its monthly policy-setting meeting that a sanctions war could worsen the growth outlook on the continent, where demand is already weak. The ECB elected to hold borrowing rates at record low levels on Thursday. Europe's main bourses were lower, with London's down 0.4 percent, Germany's DAX off 0.8 percent and France's CAC 40 down 1.2 percent. Russia said on Wednesday it would ban all food imports from the United States and all fruit and vegetables from Europe in a stronger-than-expected answer to Western sanctions for Moscow's support for separatists in Ukraine. German Bunds slid to a record low of 1.079 percent while the 10-year UK gilts yield touched a one-year low of 2.493 percent. Gold climbed back above $1,300 an ounce to $1,305 and 10-year U.S. bond yields touched near a two-month low at 2.45 percent.
