European stocks rose at the request of Ukraine.Volkswagen soars to powerful results

European stocks rose on Monday as investors set expectations for Ukraine and Russia’s diplomatic efforts to end the week-long conflict. Meanwhile, Volkswagen’s stock soared after German automakers doubled operating profit.

The Pan-European STOXX 600 index rose 1.0%, expanding from Friday, when Russian President Vladimir Putin showed positive changes in negotiations with Ukraine.

Russia and Ukraine gave the brightest ratings following weekend negotiations, despite Russia’s attack on a base near the Polish border and rage elsewhere.

“There are no signs that hostilities in Ukraine will be mitigated yet, but risk assets behave as if most of the negatives are currently priced,” said Ian Williams, an economic and strategic research analyst at Peelhunt. I’m starting. “

Automobile stocks rose 4.1%, leading the rise between sectors. Volkswagen AG surged 6.6% due to higher operating profit due to higher prices and improved product mix.

However, miners exposed to China, which recently outperformed, fell 1.8% as the world’s top metal consumers surged in COVID-19 infections, fueling concerns about economic growth prospects.

The share of luxury brands such as LVMH and Richemont, which rely on China for most of their sales, has also declined.

Investors are expected to raise interest rates later this week as the Federal Reserve and the Bank of England await policy decisions.

Banks rose 2.8%, raising expectations for rate hikes to combat rising inflation, expanding the backlash from last week’s year-long lows.

Expectations for progress in peace talks have lowered oil prices. Oil surged this month after Western sanctions on Russia over its invasion of Ukraine raised concerns about supply turmoil.

French utility EDF has fallen 1.5% after warning about its 2022 profit outlook, and issues of wholesale energy price caps and lower nuclear power could impact the Group’s ability to meet its financial goals. Said there is.

Dutch tech investor Prosus, which owns a stake in Tencent in China, fell 10.6%, reflecting concerns over regulatory concerns.

Telecom Italia rose 8.0% after announcing that it would begin formal talks with KKR to evaluate the potential € 10.8 billion ($ 11.8 billion) offer of the US fund to Italy’s largest telephone group.

By Sruthi Shankar