Europe close: Stocks yield early gains on talk of further sanctions

Stock markets across Europe yielded their earlier gains in late afternoon trading, amid talk regarding the potential for further sanctions from the West on Russia.

In remarks to CNN, US deputy national security advisor for international economics, Daleep Singh, said that more measures would be adopted even if Russia did not cross the so-called 'contact line' in the Donbass, but did not specify any timing.

"No, costs continue to ratchet higher. The violation of Ukraine’s territorial integrity and its sovereignty are unacceptable," Singh reportedly said.

An extraordinary meeting of European Union leaders was also called for Thursday, reportedly to discuss trigger points for potential future sanctions.

Against that backdrop, the Stoxx 600 dipped 0.28% to 453.86, alongside a 0.42% decline on the German Dax to 14,631.36, while France's Cac-40 slipped 0.1% to 6,780.67.

"Investors continue to sell into strength it seems, with the latest move higher beginning to encounter a wall of selling pressure that suggests the risk-off moves of the past six weeks have further to run," was IG chief market analyst Chris Beauchamp's take on markets.

In equity news, shares in UK student accommodation provider Unite Group jumped as it swung to a profit and reported a positive outlook.

Automakers Stellantis advanced after the company reported the annual margin on adjusted operating profit climbed above its target.

Shares in French yoghurt maker Danone were up as the company reported stronger-than-expected sales growth in the last quarter of 2021.

Barclays gained 3.1% after a record annual profit and return of £2.5bn to shareholders in 2021.

Rio Tinto edged lower even as the Anglo-Australian miner declared a massive final dividend as profits surged on the back of rising commodity prices.