European stocks rebounded from recent sharp losses and closed on a high note on Wednesday as commodity prices fell, and traders indulged in some hectic bargain hunting across the board.
Sentiment was helped after analysts said the U.S. and U.K. ban on Russian oil imports will be far less disruptive to global markets than a full international embargo.
In addition, Ukraine President Volodymyr Zelensky said he is no longer pressing for NATO membership for Ukraine, a delicate issue that was one of Russia’s stated reasons for invading its pro-Western neighbor.
The pan European Stoxx 600 surged up 4.68%. The U.K.’s FTSE 100 advanced 3.25%, Germany’s DAX soared 7.92% and France’s CAC 40 climbed 7.13%, while Switzerland’s SMI spurted 3.95%.
Among other markets in Europe, Austria, Belgium, Finland, Greece, Ireland, Netherlands and Spain climbed 4 to 8%.
Czech Republic, Denmark, Iceland, Poland, Portugal, Sweden and Turkey gained 1.3 to 3.5%. Norway ended with modest gains.
In the UK market, Polymetal International skyrocketed nearly 70%. The precious metals miner said it continued to be unaffected by ongoing sanctions in Russia.
Evraz soared 18.7%, Melrose Industries surged up 13.5%, Electrocomponents, St. James Place and IAG gained 11 to 12%, while JD Sports Fashion, Flutter Entertainment, Coca-Cola HBC, CRH and Smurfit Kappa Group gained 9 to 10%.
Scottish Mortgage, Prudential, Whitbread, ICP, Lloyds Banking Group, 3i Group, Next and Associated British Foods gained 7 to 9%.
Prudential shares rallied sharply after the company said it posted a 16% rise in operating profit last year, helped by strong new insurance sales.
Phoenix Group Holdings shares moved up after the company said it was talking to its asset management partners to understand how they are managing their Russia and Ukraine risks.
Shares of consumer goods giant Unilever gained nearly 3% after the company said it is suspending imports and exports out of Russia.
Fresnillo tumbled 7.2% and BAE Systems shed about 4.2%, while BP, Anglo American Plc, Shell, Antofagasta, Glencore and Rio Tinto lost 1 to 2.3%.
In the French market, Faurecia soared more than 17%. Accor, Valeo, Veolia, Societe Generale, Renault, Unibail Rodamco and StMicroelectronics gained 10 to 14%.
LVMH, LO’real, Michelin, Hermes International, Sanofi, Airbus Group, Schneider Electric, Kering, Air Liquide, AXA, Vinci, Pernod Ricard, Safran, Danone, Credit Agricole, CapGemini, Engie, Saint Gobain Essilor and BNP Paribas gained 6 to 10%.
French software major Dassault Systèmes SA gained nearly 5%. The company said it has decided to suspend all new business in Russia and Belarus, following ongoing Russian invasion in Ukraine.
In Germany, Adidas zoomed nearly 14% after the firm forecast strong growth for the year. Deutsche Post soared nearly 10% after reporting a 65% increase in 2021 operating profit.
Porsche Automobil, Puma, Volkswagen, Siemens, Merck and BASF gained 10 to 13%. Zalando, Munich RE, Covestro, Fresenius, HelloFresh, RWE and HeidelbergCement moved up 8 to 9.5%.
Deutsche Bank, Siemens Healthineers, Allianz, E.ON, BMW, Sartorius, Brenntag, MTU Aero Engines, SAP, Deutsche Wohnen and Vonovia also closed with strong gains.
In economic news, France payroll employment continued to increase in the fourth quarter driven by private employment, the statistical office Insee said on Wednesday.
Payroll employment increased 0.4%, or 106,900 jobs. This was the fourth consecutive quarterly increase. Employment had increased 0.5% in the third quarter.
Private payroll employment advanced 0.6%, while employment in the public sector dropped 0.2% in the fourth quarter.
Market Analysis
European Markets Close On High Note On Bargain Hunting, Weak Commodity Prices
2022-03-09 17:47:02
