European stocks traded strong on Wednesday, with the pan-European Stoxx 600 index hitting its best level in almost two years amid expectations of a diplomatic solution to de-escalate the conflict in Ukraine.
Hopes for a possible solution to the Russian-Ukrainian crisis were fueled today by positive statements from both Moscow and Ukraine that show that there are issues on which the two sides can find points of convergence.
Moscow, through Russian Foreign Ministry spokeswoman Maria Zakharova, stressed today that Russia would achieve its goal of securing a neutral status for Ukraine and would prefer to do so through talks, but did not include overthrowing the government. of Kiev. He stressed that “we hope to make more significant progress in the next round of talks with Ukraine”, reiterating that its country reacted to the “conflicting course” followed by the North Atlantic Alliance.
For its part, Kyiv, through the deputy director of the presidential office Ihor Zhovkva, said that “Ukraine will not consent to any unacceptable ultimatums set by the attacking Russia”, but noted that Kyiv is ready to discuss neutral regime of Ukraine.
Ukrainian President Volodymyr Zelensky also told ABC News that he had lost interest in NATO, noting that he was open to dialogue on the fate of the republics of eastern Ukraine, Donetsk and Lugansk, which Russia recognizes as independent.
In this context, investors are anxiously awaiting tomorrow’s meeting in Turkey of Russian Foreign Minister Sergei Lavrov and Ukrainian Foreign Minister Dmitry Kuleba in Antalya, for the first time since the Russian invasion.
The hopes of a possible diplomatic solution to the war in Ukraine were the trigger for the return of buyers to international markets, sparking a rally in Europe as well.
In particular, the pan-European Stoxx 600 index jumped 4.68% to close at 434.46 points, ending its best day since March 2020, with most stock markets and industries closing in positive territory. The car sector led the way, with gains of 9.5%, while the “weight” was the oil and gas sector, which fell by almost 2.5%, as a result of the de-escalation of energy prices.
In the individual stock markets, the DAX index in Frankfurt ended the day with a “jump” of 7.92% to 13,847.93 points, in Paris the CAC 40 ended the session with gains of 7.13% to 6,387.83 points, while in London The FTSE 100 closed with gains of 3.25% at 7,190.72 points.
In the European region, the FTSE MIB index in Milan closed 6.95% higher at 23,889.49 points, while the IBEX 35 in Madrid recorded gains of 4.88% at 8,163.10 points.
On the business front, Adidas’s share jumped almost 13% after the German sportswear company announced that it was expecting a recovery in sales in China, although it warned of a blow of up to 250 million euros from the closure of its activities in Russia.
For its part, Deutsche Post recorded gains of 11.55%, announcing that its operating profits increased by 65% in 2021.
However, investors are waiting for tomorrow’s meeting of the European Central Bank for new data on its plans for interest rates in the coming months as the price rally continues and consumers in Europe (and beyond) are preparing for a new global inflation shock. from the recent spike in energy, food and metal prices due to the war in Ukraine and Western sanctions against Russia.
Source: Capital
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