European stocks closed higher on Wednesday, reversing their earlier picture as rising commodity prices boosted shares of energy and mining companies for fear of reducing supply in the wake of harsh sanctions against Russia. .
Russia and Ukraine are reportedly pushing for a second round of talks, raising hopes that a Russian-led invasion of Ukraine could end after seven days of escalating clashes that have led Moscow to bomb even populated areas.
On the board, the pan-European Stoxx 600 index closed the session at 446.32 points, recording gains of 0.74%. The oil and gas sector recorded strong gains, rising 4.1% as Brent crude surpassed $ 110 a barrel for the first time since 2014.
Significant gains of 2.3% were also recorded in the mining sector, as metal prices, including copper and aluminum, soared amid fears of disruption in supply chains.
An additional impetus to the upward reaction of European markets, which led to the closure with significant gains, was given by the statement of the chairman of the Federal Reserve to the Committee on Financial Affairs of the Congress earlier today, where he stated that the federal bank intends to proceed with the draft law. policy, with interest rates rising in March, despite uncertainties caused by the Russian-Ukrainian crisis.
Powell’s comments boosted banking stocks, with the industry index gaining 1.4% on Wednesday, after slipping to a nearly 11-month low.
On the other hand, the utility sector fell, which closed 1.7% lower.
In Frankfurt, the DAX index closed with a rise of 0.69% exactly at the psychological limit of 14,000.11 points, while in Paris the CAC 40 gained 1.59% and finished at 6,498.02 points. In London, the FTSE 100 closed 1.36% higher at 7,429.56 points.
Gains in the European region, with the Italian FTSE MIB completing the day at 24,534.33 points with an increase of 0.70% and the Spanish IBEX 35 recording gains of 1.62% at 8,321 points.
Meanwhile, the rally in oil prices does not seem to be losing momentum despite the announcement of the International Energy Agency yesterday that the US and other major countries have agreed to release about 60 million barrels from their strategic reserves. Brent has surpassed $ 110 a barrel as OPEC + has kept its plan to increase production by 400,000 barrels a day unchanged, despite price rallies and international pressure to increase production faster.
The rally in energy prices led to a new record inflation in the Eurozone in February, according to initial data released today by Eurostat. In particular, inflation in the 19 countries that share the euro climbed to 5.8% in February from 5.1% in January, exceeding the average estimates of analysts who put inflation at 5.4%.
Source: Capital
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