Europe midday: Shares hold gains at end of volatile week

European shares held gains at midday on Friday at the end of a volatile week dominated by the war in Ukraine.

The pan-regional Stoxx 600 index looked set to post a 0.4% gain for the week, and was up 1.10%. All major continental bourses were posting strong gains.

In Washington, the US Congress voted to revoke Russia’s trade status and ban oil and gas imports, along with banning all new investment in the country. It also slapped sanctions on Russia President Vladimir Putin’s daughters, after reports of rape and torture against civilians by his forces in Ukraine.

“In the US, a choppy session ended positively for markets as investors sought defensive sectors such as healthcare and consumer staples, typified by companies with strong and stable earnings,” said Interactive Investor head of markets Richard Hunter.

“This approach is not new, but is in continuing reaction to the Federal Reserve minutes from earlier in the week which suggested the likelihood of a more aggressive approach to tackling inflation.”

Brent oil hovered around the $100 mark, while West Texas crude was sitting at $96 - both a long way from the $130 levels seen when Russia rolled its tanks and troops uninvited over Ukraine's border. The price has slid on fears of weaker China demand as Shanghai, its largest city, remained in Covid lockdown.

"A second weekly decline in oil prices has eased some of the pressures on the global economy going forward, thanks to a combination of factors including huge strategic petroleum reserve releases and Chinese lockdowns. Still, at around $100 a barrel, prices are very high and there remain significant upside risks going forward," said OANDA analyst Craig Erlam.

"How prolonged and widespread Chinese lockdowns become could be a key factor in the short-term, with it being such a large consumer and some cities with very few cases already imposing harsh restrictions. The zero-Covid approach in Beijing could weigh heavily on economic activity, with the hope being that a quick eradication can once again see it rapidly spring back. If not, it could help keep a lid on oil prices."

In equity news, shares in Scout24 surged 14.7% after reports that buyout groups Hellman & Friedman, EQT and Permira were exploring a bid.

Shares in Polymetal fell as accounting giant Deloitte quit as the firm’s auditor due to the gold miner’s ties to Russia.

Banco BPM shares surged after French bank Credit Agricole said it has bought a 9.2% stake in Italy's third-largest bank.

Swedish truck maker Volvo fell after saying it will take a $423m hit from Russia’s war in Ukraine.