European shares opened slightly higher on Tuesday as investors hoped peace talks in Turkey between Russia and Ukraine would make progress and bring about a ceasefire.
The pan-European Stoxx 600 index was up 0.41% in early deals with France’s CAC-40 up 1.26%. Asian markets were mostly higher with the exception of China, with sentiment dampened by a lockdown it Shanghai, it’s largest city.
Worries about weaker demand from China also hit oil prices, although they were still above $100 a barrel.
Germany’s DAX index also out performed, despite a consumer survey revealing that consumer morale is likely to slump next month as the war in Ukraine pushed consumer expectations to their lowest since the 2009 global financial crisis.
“There is no doubt that Russia had significant business relations with Germany. Given that economic ties are on the verge of collapse between Russia and Germany,” said Avatrade analyst Naeem Aslam.
He added that German businesses were worried that sanctions imposed on Russia due to US pressure “could cost them dearly, and the current economic situation has yet to factor that in full”.
In equity news, shares in Polymetal soared by a fifth as the Russia-focused gold miner said it was considering changes to its corporate structure including “distinct ownership in various jurisdictions” where the company operates.
The Financial Times reported on Monday that Polymetal was debating whether to split its Russian business off to protect the its other operations from the effects of sanctions. The company could split its Russian and Kazakh businesses with separate listings.
Shares in UK house builder Bellway fell despite the company announcing a big increase in its dividend and a reduction in dividend cover as the housebuilder reported an 8.9% increase in underlying first-half profit.
