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.