European shares rebounded strongly at the open on Wednesday, as investors went bargain hunting for companies battered by the recent sell-off in the wake of Russia’s invasion of Ukraine.
The pan-European Stoxx 600 index was up rose 2.24% with the French, German and Spanish bourses all outperforming with rises of more than 3%.
Investors are eyeing the US decision to ban Russian oil and gas imports, with the UK mulling a similar move. Brent oil prices were 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 6.7% 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.
European suppliers to tech giant Apple such as ASML, ams and Infineon all gained after Apple added 5G connectivity to its low-cost iPhone SE and iPad Air and introduced a faster chip for a new desktop.
German logistics company Deutsche Post jumped 4.9% after reporting a 65% increase in 2021 operating profit.
Italy’s second-biggest bank UniCredit gained 7.4% and French bank BNP Paribas climbed 7.9%, helped by a broad-based rally, even as the banks unveiled their exposure to Russia.
Shares in Asia-focused insurer Prudential rose as the company reported a rise in earnings driven by new business.
Budget carriers Wizz Air and easyJet both rebounded with rises of more than 8%.
