European shares started the week higher on hopes that talks to end the war in Ukraine would make progress, despite repeated Russian shelling of several cities in the besieged country.
The Stoxx 600 index was up 0.49% in early deals after a mixed session in Asia. Germany’s DAX was a standout performer, up 1.79%.
Chinese stocks fell overnight as domestic Covid-19 cases jumped to a two-year high, prompting Beijing’s technology and financial hubs to impose restrictions.
Investors were also eyeing US producer price index data expected to show an annual 10% jump on Tuesday.
The Stoxx rallied last week when Russian President Vladimir Putin on Friday signalled a positive shift in talks with Ukraine. Officials were set to resume discussions on Monday, even as Russia attacked a base near the Polish border.
In equity news, Volkswagen shares were up 5% as the automaker posted higher operating profits. Porsche shares were up on the sentiment, along with tyre makers Continental and Nokian.
French power utility EDF slipped after it issued a warning on its outlook for the current year, citing wholesale energy price caps and lower nuclear output problems.
Shares in Dutch tech investor Prosus, which owns a stake in China’s Tencent, were down 8%, reflecting weakness in Hong Kong-listed tech giants on regulatory concerns.
Airline shares were all higher as they continued their roller-coaster ride amid the Ukraine conflict, with IAG and easyJet flying higher.
