European markets choppy as Russia-Ukraine tensions rise; Porsche, VW surge in IPO talks
LONDON — European stocks were volatile on Tuesday as global markets were shaken by developments in the Russia-Ukraine crisis
| TICKER | COMPANY | NAME | PRICE | CHANGE | %CHANGE | VOLUME |
|---|---|---|---|---|---|---|
| .FTSE | FTSE 100 | *FTSE | 7513.46 | 29.13 | 0.39 | 655393499 |
| .GDAXI | DAX | *DAX | 14731 | -0.12 | 0 | 86042842 |
| .FCHI | CAC 40 Index | CAC | 6794.49 | 6.15 | 0.09 | 68864703 |
The pan-European Stoxx 600 index hovered around the flatline by early afternoon, having recovered losses of more than 1.8% shortly after the open. Autos gained 1.8% while food and beverage stocks slipped 0.9%
Global markets were reacting to the latest news from Europe after Russian President Vladimir Putin ordered troops into two breakaway regions of eastern Ukraine. The move came after he announced Monday evening that he would recognize their independence
The decree formalizing the move called for “peacekeeping” forces to enter the self-proclaimed and pro-Russian republics of Donetsk and Luhansk, which are in the Donbas region of eastern Ukraine
That announcement was followed by news that U.S. President Joe Biden was set to order sanctions on the separatist regions, with the EU pledging to take additional measures
The U.K. initially slapped targeted sanctions on five Russian banks and three wealthy individuals, while Germany halted the certification of the Nord Stream 2 gas pipeline, designed to transport natural gas from Russia directly to Europe
U.S. stock futures were slightly lower in early premarket trade, also retracing some earlier losses as traders continued to monitor brewing tensions between Russia and Ukraine. Markets in Asia fell overnight, with Hong Kong’s Hang Seng index leading losses regionally
Earnings came from HSBC, Fresenius, Antofagasta and IHG on Tuesday
In terms of individual share price movement, Porsche Automobil Holding and Volkswagen gained 13.7% and 9.4% respectively after confirming advanced discussions about a potentially record-breaking IPO for Porsche
At the bottom of the index, British retail investment platform Hargreaves Lansdown plunged more than 15% after reporting a decrease in profit for the first half of fiscal 2022
On the data front, Germany’s Ifo business climate index rose to 98.9 in February from 96.0 in January despite the situation in Ukraine, though the research institute said German businesses already afflicted by supply bottlenecks will see a drag
