Europe close: Stocks end mixed as investors monitor headlines around Ukraine-Russia crisis
European shares finished on a mixed note after Russia's unexpected decision overnight to recognise two breakaway republics in Ukraine's Donbass region and possibly send in "peacekeepers".
Helping indices come off their lows, reports were that the sanctions being planned by Brussels and Washington might not be massive for now.
But by the end of the day, talk in Washington was that the deployment of Russian troops in the Donbass was the start of an invasion and analysts in the City were cautious.
Against that backdrop, the pan-European STOXX 600 index had edged up by 0.07% to 455.12, alongside a 0.26% dip on the German Dax to 14,693.0.
Even Moscow's RTS index managed to bounce back, even if only marginally, adding 1.59% to 1,226.73, but was trading far above its lows of the session and with the dollar lower against the rouble alongside.
In parallel, front-dated Brent futures continued to make a beeline towards the psychological $100 a barrel mark, rising 1.56% to $96.88 a barrel on the ICE, while April gold futures on COMEX tacked on 0.32% to $1,905.90/oz..
IG chief market analyst Chris Beauchamp's take on the session was that "the lack of any full-on conflict in eastern Ukraine has provided the chance for markets to edge higher.
"[...] But such swift bounces are a feature of declining markets, and with further developments in the crisis inevitable, the likelihood is that a headline will come along sooner or later and prompt another leg lower."
Worth noting, German Chancellor Olaf Scholz responded to the latest moves by the Kremlin by announcing that he would halt certification of the Nordstream 2 gas pipeline.
Furthermore, some western officials continued to warn that the risk of an invasion still existed.
Russian lawmakers' and officials' remarks appeared to be somewhat at odds regarding whether Moscow was planning to recognise separatists' claims to land not in the provinces of Donetsk and Luhansk not already in their possession.
In equity news, medical equipment manufacturer Smith & Nephew jumped as full-year operating profits doubled in 2021, partly driven by a solid performance in its sports medicine and ENT and advanced wound management units.
Shares in financial services company Hargreaves Lansdown tanked as it revealed profits had fallen during the first half of its 2022 trading year on the back of a reduction in share-dealing revenues.