European stocks climb on report that Russia is returning some troops to bases
The pan-European Stoxx 600 index climbed 1.2%, with industrials and autos each adding 1.4% to lead gains as all sectors and major bourses entered positive territory.
Russian Defense Ministry spokesman Igor Konashenkov was quoted as saying military units from the southern and western districts of Russia had already begun returning to their garrisons, a move that could de-escalate the febrile geopolitical stand-off between Russia and the west over Ukraine.
Russian President Vladimir Putin and German Chancellor Olaf Scholz are set to hold talks in Moscow on Tuesday as diplomatic efforts ramp up. Fears that Russia could invade Ukraine in the coming days, a claim the Kremlin has repeatedly denied, had gripped markets on Monday.
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 the 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 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.
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.
