European stocks open higher, all eyes on Ukraine

European stock markets rose at the start of trading on Wednesday, as investors kept an eye on the latest developments in the Russia-Ukraine crisis.

The benchmark FTSE 100 index in London rose 0.5 percent to 7,531.42 points, up from the previous day’s close of 7,531.42 points.

In the eurozone, the Frankfurt DAX rose 0.8 percent to 14,814.86 points, while the Paris CAC 40 rose nearly 1% to 6,854.16.

Asian equities rose after world powers imposed less severe sanctions on Moscow than had been expected. Trading floors are still tense after Russian President Vladimir Putin ordered his forces into Ukraine to secure the self-proclaimed Donetsk and Lugansk rebel republics, prompting Western leaders to warn that war is imminent.

Global stock

Global stock markets and Wall Street futures recovered Wednesday from fears that Western sanctions against Russia imposed due to President Vladimir Putin’s authorization to send troops into eastern Ukraine.

London and Frankfurt started the day higher. Shanghai, Hong Kong, and Seoul made strides. The Japanese stock exchanges were closed for a holiday. The market is less concerned about current US sanctions against Russia, according to Anderson Alves of ActivTrades in a report. Alves pointed out that Western governments have more “acute options,” such as restricting Russia’s access to the SWIFT system for global bank transactions. The FTSE 100 in London rose 0.4 percent to 7,523.96 in early trading, while the DAX in Frankfurt rose 0.7 percent to 14,798.01. The CAC in Paris rose 0.9 percent to 6,845.85 points.

The benchmark S&P 500 index futures rose 0.8 percent on Wall Street, while the Dow Jones Industrial Average futures rose 0.7 percent.

The S&P 500 fell 1% on Tuesday. That put it 10.3 percent below its all-time high set on January 3 and into a correction.

Asia stock

In Asia, the Shanghai Composite Index increased by 0.9 percent to 3,489.15, while the Hong Kong Hang Seng increased by 0.6 percent to 23,660.28.

Seoul’s Kospi rose 0.5 percent to 2,719.53, while Sydney’s S&P-ASX 200 rose 0.6 percent to 7,205.70.

New Zealand rose after the central bank raised its benchmark interest rate by a quarter-point to 1% to keep inflation under control. The Reserve Bank of New Zealand announced that its benchmark rate would be increased to more than 3% by next year.

The Sensex in India opened 0.2 percent higher at 57,425.96. Singapore and Indonesia grew, while Bangkok fell.

Markets jolted after Putin acknowledged the independence of rebel-held areas in Ukraine and sent troops in defiance of US and European pressure.

Wheat prices rose because supplies from Russia and Ukraine disrupts. Nickel and aluminum prices, which Russia is a major supplier, have also increased.

European gas prices rose after Germany withdrew an essential document required to certify Russia’s Nord Stream 2 gas pipeline.