European shares extended their rebounded rally on Wednesday on news that Turkey will host peace talks between Ukraine and its invader Russia, with gold miner Polymetal soaring by more than 40%.
The pan-European Stoxx 600 index was up 3% with Germany’s DAX up almost 5% and France’s CAC 40 gaining 4.53%. as investors hunted for bargains in the wake of a week-log sell-off.
Investors are eyeing the US decision to ban Russian oil and gas imports, with the UK mulling a similar move, as Brent oil prices moved up to $129 a barrel. They are also looking ahead to the European Central Bank’s monetary policy meeting on Thursday for signals as to how policymakers are approaching inflation and the conflict in Ukraine.
In equity news, Adidas shares gained as the German sportswear company’s earnings were well received. The company said it expects a sales recovery in its China business but warned of up to €250m hit from halting business in Russia.
Polymetal International shares surged more than 44% after the Anglo-Russian miner said that all of its operations in Russia and Kazakhstan have continued undisrupted, and said targeted sanctions against it are unlikely.
Belgian automobile distribution company D’Ieteren Group fell 7% after its full-year earnings report.
German logistics company Deutsche Post jumped 4.9% after reporting a 65% increase in 2021 operating profit.
Shares in Asia-focused insurer Prudential rose as the company reported a rise in earnings driven by new business.
East Europe focused budget carrier Wizz Air was up 12% on optimism around the peace talks.
Russian steelmaker Evraz also shot higher after saying it had not been affected by international sanctions imposed on Russia.
Asia-focused insurer Prudential was also among the gainers as it reported a rise in annual operating profit driven by new business amid the Covid pandemic. Adjusted operating profit increased 16% to $3.23bn and beat the consensus of $3.19bn.
Legal & General was up after it posted a jump in 2021 profit and lifted its dividend as it benefited from a post-pandemic economic recovery and an easing of restrictions.