European stocks climb, shrugging off Russia-Ukraine concerns

Key Points

• Markets around the world have been roiled over the past week by a ratcheting up of tensions in eastern Europe and concerns that the U.S. Federal Reserve could be forced to tighten monetary policy more aggressively than hoped, following the highest annual inflation print since 1982.
• Earnings remain a key driver of individual share price movement in Europe, with Glencore, Engie, Randstad and DSM among the companies reporting before the bell on Tuesday.

LONDON – European stocks were higher on Tuesday as global investors continued to monitor the geopolitical situation in Ukraine.

The pan-European Stoxx 600 index gained 0.7% in early deals, despite having initially opened in the red. Food and beverage stocks added 1.3% to lead gains as all sectors and major bourses entered positive territory.

Earnings remain prominent in Europe, with Glencore, Engie, Randstad and DSM among the companies reporting before the bell on Tuesday.

Italy’s Banco BPM climbed 5.4% to lead the Stoxx 600 in early deals after Morgan Stanley upgraded the stock to “overweight” and raised its price target.

At the bottom of the European blue chip index, Swiss banking software company Temenos fell more than 8% after missing fourth-quarter earnings expectations.

Russian President Vladimir Putin and German Chancellor Olaf Scholz will hold talks in Moscow on Tuesday as diplomatic efforts ramp up amid fears that Russia could invade Ukraine in the coming days, a claim the Kremlin has repeatedly denied.

The United States on Monday ordered the closure of its embassy in Kyiv and ordered the relocation of staff to the western Ukrainian city of Lviv, citing the “dramatic acceleration in the buildup of Russian forces” at Ukraine’s border.

Markets around the world have been roiled over the past week by a ratcheting up of tensions in eastern Europe and concerns that the U.S. Federal Reserve could be forced to tighten monetary policy more aggressively than hoped, following the highest annual inflation print since 1982.

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Shares in Asia-Pacific were mixed on Tuesday as investors continued to monitor developments in Ukraine, while U.S. stock futures were fractionally lower in early premarket trade, pointing to a lackluster open on Wall Street later in the day.

On the data front, a euro zone flash fourth-quarter GDP estimate is due on Tuesday morning, along with December’s employment and trade figures for the bloc.

Source : CNBC