European Shares Rise Led By Banks

European stocks advanced on Tuesday after reports emerged that Ukrainian President Volodymyr Zelensky was prepared to discuss a commitment from Ukraine not to seek NATO membership in exchange for a ceasefire, the withdrawal of Russian troops and a guarantee of Ukraine’s security.

Also, investors appeared to take in stride Federal Reserve Chair Jerome Powell’s comments Monday that the U.S. central bank was prepared to raise rates aggressively, if needed.

U.S. Treasury yields have risen to their highest level since 2019 and Euro zone government bond yields followed suit after Powell’s hawkish comments.

The pan European Stoxx 600 rose half a percent to 456.88 after closing flat with a positive bias the previous day.

The German DAX rallied 1 percent, France’s CAC 40 index gained 0.7 percent and the U.K.’s FTSE 100 was up 0.6 percent ahead of Wednesday’s spring statement.

Banks climbed on expectations that they would benefit from higher interest rates.
Commerzbank, Deutsche Bank, Barclays, BNP Paribas and HSBC Holdings jumped 2-3 percent.

British home improvement retailer Kingfisher dropped 2.1 percent despite the company reporting a significant rise in pretax profit and revenue for fiscal 2022.

Softcat, a provider of IT infrastructure products and services, soared 9.2 percent after reporting solid half-year results and lifting full-year guidance.

Finnish utility Fortum gained about 1 percent after it agreed to sell its 50 percent stake in Fortum Oslo Varme for 10 billion Norwegian crowns ($1.14 billion).

Europe’s largest online restaurant food ordering service Just Eat Takeaway.com jumped 2.8 percent. The company has secured a long-term global strategic partnership with McDonald’s Corp. that will lead to increased operational benefits.