European stocks trade higher as markets monitor Ukraine, growth outlook

LONDON — European stocks were trading broadly higher on Wednesday as investors monitored developments in Ukraine and assessed the IMF’s latest global economic forecasts

The pan-European Stoxx 600 index was trading around 1% higher in the early afternoon with most sectors in positive territory apart from basic resources, telecom and healthcare

Credit Suisse Group shares were down 1.5% after the Swiss bank said it expects a loss in reported first-quarter earnings after increasing legal provisions

Shares of Heineken were up 4.3% after the world’s largest brewer reported higher-than-expected beer sales in the first quarter. Semiconductor company ASML saw its shares rise 7.4% after its first-quarter earnings beat expectations slightly

Data released by the ACEA on Wednesday showed new car registrations continued to decline in the EU, falling around 20% in March

European markets continue to focus on the war in Ukraine. The conflict has entered a second phase in which fierce fighting has begun in the east of the country

Ukraine said on Monday that Russia’s offensive in the eastern Donbas region had begun, with a top official describing it as the “second phase” of the war. The eastern city of Kreminna fell to Russian forces on Tuesday, its regional governor said, marking the first city to be captured in this phase of the war

Investors are also digesting the latest gloomy global economic forecasts from the International Monetary Fund and World Bank

On Tuesday, the IMF cut its global growth projections for 2022 and 2023, saying the economic impact from Russia’s invasion of Ukraine will “propagate far and wide, adding to price pressures and exacerbating significant policy challenges.” On Monday, the World Bank lowered its global growth forecast for 2022 by nearly a full percentage point, from 4.1% to 3.2%, citing the pressure that Russia’s invasion of Ukraine has placed on the global economy