Title: European stocks rebound after four-day selloff
Mar 09, 2022 04:45AM ET
European stocks rebounded on Wednesday as investors picked up battered shares after a recent slide triggered by fears of increasing Western sanctions against Russia following its invasion of Ukraine.
The pan-European STOXX 600 index rose 2.6% after a four-day losing streak. Heavily beleaguered banks, automakers, and the travel and leisure sector led the gains in morning trade, all rising more than 4% each.
Adidas rose 8.2% after the German sportswear company said it expected sales to recover in its China business but warned it could suffer up to €250 million in damage from the suspension of business in Russia.
German logistics company Deutsche Post jumped 6.7% after reporting a 65% rise in operating profit in 2021.
European banks rose 4.8%, but are still down 12% for the year as the European Central Bank's plans to tighten monetary policy are uncertain and the Ukraine crisis weighs on the economy.
The ECB is due to meet on Thursday and chief Christine Lagarde is likely to prove that eurozone inflation can be contained. It is already higher than expected at 5.8%, the highest in two decades.
Europe's STOXX 600 has lost nearly 13% so far this year as the conflict in Ukraine threatens to slow the economic recovery and several countries impose sanctions on Russia, a major commodity producer.
Stock markets fell in volatile trading and oil prices jumped 4% to $127 a barrel on Tuesday after the United States and Britain imposed a ban on Russian oil imports, stoking fears of global stagflation.
Russia had warned earlier this week that it could cut supplies to Germany via the Nord Stream 1 pipeline.