Europe midday: Stocks slip as investors wait on Ukraine talks
European shares were lower on Tuesday as talks between Russian and Ukrainian negotiators continued and Chinese Covid cases climbed.
As of 1230 GMT, the pan-European Stoxx 600 index was down 0.86% to 432.63, but off its earlier lows, alongside a 1.13% drop for the German Dax to 13,771.88 and a 1.08% slide on the French Cac40 to 6,302.06.
Front-dated Brent crude oil meanwhile was slipping 7.33% to $99.07 per barrel on the ICE, alongside a 0.49% advance for euro/dollar to 1.0994.
Weighing on crude were hopes for a peace deal between Ukraine and Russia, risks to the Chinese economy from the pandemic and the possibility that Venezuelan crude might return to international markets.
Peace talks between Kyiv and Moscow were ongoing even as Russian forces continued to shell Ukrainian cities and their civilian populations. Meanwhile, China and Russia were denying claims by Washington that Moscow had asked Beijing for military assistance.
Asian markets slumped overnight as China reported a growing number of new Covid cases. The Shanghai Composite and Hong Kong’s Hang Seng index were down 5% and 6%, respectively.
Investors were also eyeing the US Federal Reserve meeting on Wednesday, with markets widely expecting a 25 basis point rate rise to offset inflation. The Bank of England was expected to follow suit a day later.
In equity news, Swiss lab instrument maker Tecan Group slumped 15% despite a strong rise in 2021 profit.
Shares in Swedish fashion retailer H&M slipped 3.2% after reporting a rise in quarterly sales that was in line with expectations.
Tobacco and nicotine products maker Swedish Match fell 1% after the company said it was suspending plans to spin off and list its US cigar business.
Dutch tech investor Prosus, which has a stake in China's Tencent, retreated 9% amid continued weakness in Chinese tech shares.