European markets climb as Ukraine-Russia talks begin; Stoxx 600 up 1.8%
LONDON — European stocks advanced on Tuesday as another round of Ukraine-Russia talks got underway.
The pan-European Stoxx 600 climbed 1.8% by mid-afternoon, with autos jumping 4.5% to lead gains as all sectors and major bourses traded in positive territory.
In terms of individual share price movement, Swedish investment company Storskogen Group added more than 12% to lead the European blue chip index, while German chemicals firm K+S fell 5%.
The gains in Europe came as investors in the region remained focused on developments in Russia’s invasion of Ukraine. Face-to-face talks between the two sides are set to continue this week, with delegations from both countries arriving in Turkey as talks resumed on Tuesday.
Ukrainian officials said they would not be opening any humanitarian corridors Monday to allow the evacuation of civilians in light of intelligence that suggested Russian forces may be planning an attack on the evacuation routes.
With bond markets particularly febrile at present and stocks around the world grinding higher despite the ongoing uncertainty around Ukraine and inflation, the TINA (there is no alternative) approach to equities might be in play, suggested James Athey, senior investment manager at Abrdn.
“The psychological factor can’t be underestimated. Equity investors have for at least a decade if not longer been rewarded for buying every dip, and that Pavlovian response is difficult to fight back against,” Athey told CNBC’s “Street Signs Europe” on Tuesday.
“It will slow and it will stop happening when investors lose money in that strategy and again, so far, they haven’t really done that.”
Elsewhere, U.S. stocks rose on Monday as investors looked to build on two straight weeks of gains. Traders are awaiting a series of key economic reports, while also keeping a close eye on the Federal Reserve’s planned interest rate hikes.
Data releases in the U.S. this week include the Job Openings and Labor Turnover Survey on Tuesday, and ADP will also release its private payrolls data ahead of the closely watched monthly jobs report, on Friday.
CNBC’s coverage of the Atlantic Council Global Energy Forum continues on Tuesday and CNBC will be hosting panels with key business leaders including Regina Mayor, KPMG global sector head of energy, Larry Fink, CEO of BlackRock and Leo Simonovich, vice president and global head of Industrial Cyber & Digital Security at Siemens Energy.
On Monday, the UAE’s energy minister told CNBC at the forum that Russia will always be part of OPEC+ even as governments shun Moscow over the war in Ukraine.
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