Europe open: Stocks rebound despite Russia threat to gas supplies

European stocks rebounded sharply at the open on Tuesday, as investors shrugged off threats from Russia that it would cut gas supplies to the continent.
The pan-regional Stoxx 600 index surged 1.46% in early deals after days of losses in the wake of Russia’s illegal invasion of Ukraine. France’s CAC was up 24% and Spain’s Ibex gained more than 3%.

European bourses, including the German DAX and Italy’s FTSE MIB, on Monday confirmed they were in a bear market — marking 20% or more declines from their record closing highs due to prospects of a ban on Russian oil imports.

Tensions increased overnight with Russia Deputy Prime Minister Alexander Novak said Moscow could cut gas supplies via the existing Nord Stream 1 pipeline to Germany.

Fears of a severe supply crunch sent crude prices soaring to $127 a barrel and fuelled concerns about inflation stifling economic growth.

UK baker and fast food chain Greggs fell 8.5% after the company warned that cost headwinds would crimp profits growth this year.

M&G shares surged more than 15% after the company announced a £500m share buyback and posted reduced annual operating profit resulting partly from changes to the expected death rate.

Shares in flexible workspace provider IWG rose 12% as it announced the merger of its digital assets with The Instant Group with a view to listing the business in the next two years.

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