European stock markets closed lower on Wednesday as geopolitical tensions and the Russia-Ukraine crisis overshadowed a strong set of corporate earnings announcements.
On the board, the pan-European STOXX 600 index rose 0.28% to 453.86 points.
The German DAX lost 0.42% at 14,631.36 points, the French CAC 40 lost 0.1% at 6,780.67 points, while the British FTSE 100 recorded marginal gains of 0.05% at 7,498.18 points.
In the periphery, the Italian FTSE MIB lost 0.34%, while the Spanish IBEX 35 lost 0.63%.
Global markets came under pressure this week, with investors upset by events in Europe after Russian President Vladimir Putin ordered troops into two breakaway regions of eastern Ukraine. The move came after announcing Monday night that it would recognize their independence.
The EU and the United Kingdom announced sanctions on Russia earlier on Tuesday, followed by the United States later in the day. President Joe Biden has announced the first tranche of sanctions against Moscow, targeting Russian banks, the country’s public debt and three individuals.
For “diplomatic solutions” in order to de-escalate the crisis Russian President Vladimir Putin also spoke today, stressing, however, that his country’s interests and security are “non-negotiable.”
Restarting the dialogue, however, is a difficult task, analysts say. US Secretary of State Anthony Blinken also announced that he would not meet with his Russian counterpart Sergei Lavrov on Thursday, as scheduled, stressing that Moscow’s latest moves constitute a Russian invasion of Ukraine. “If Moscow changes its behavior, I am ready to discuss,” he added.
In terms of corporate news, Barclays exceeded expectations, as full-year profits quadrupled in 2021, due to record performance in corporate and investment banking. Shares of the British lender gained 3%.
Stellantis surpassed its profit target in the first year of the company after the merger of Fiat Chrysler and the manufacturer Peugeot PSA, recording an adjusted operating profit margin of 11.8% against a target of 10%. Shares jumped more than 4%.
The Dutch coffee giant JDE Peet’s saw its shares gain more than 14%, occupying the top of the Stoxx 600, after announcing an increase in annual profit, exceeding analysts’ expectations.
At the bottom of the European blue chip index, Swedish investment firm Storskogen Group lost about 17% after its fourth-quarter earnings report.
Source: Capital
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