European stocks closed higher Tuesday after another round of Ukraine-Russia talks began. The pan-European Stoxx 600 closed up 1.7%, with auto stocks leading the gains with a 5.9% rise, while all sectors were in positive territory except basic materials and oil and gas, which fell 2.2% and 1.9%, respectively. Russia’s deputy defense minister said after the talks that Russia had decided to drastically reduce its military activities focused on Kiev and Chernihiv, Reuters reported, while Ukrainian negotiators proposed to accept neutral status in exchange for security guarantees.
U.S. stocks rose Tuesday, continuing Wall Street’s winning streak, as traders watched cease-fire negotiations in Europe and key bond market stocks. Auto stocks were among the biggest gainers, with Ford up 6.5% and GM up more than 4%. Travel stocks also performed well, while in the technology sector Netflix was up more than 3% and Snap was up 4.5%. Traders closely watched the bond market, where the yield on the 5-year Treasury note was above the 30-year yield at times Tuesday, a reversal that stoked some recession fears.
Stocks in the Asia-Pacific region were mixed this morning as investors monitor developments related to the war in Ukraine. Hong Kong-listed shares of the electric vehicle division of troubled construction company Evergrande fell more than 10% after trading resumed Wednesday. Meanwhile, Hong Kong-listed shares of China Evergrande Group are “suspended until further notice,” the company said Tuesday.
Chinese oil giant CNOOC plans to sell shares in April for listing in Shanghai
CNOOC, China’s leading offshore oil and gas producer, plans to sell shares for a Shanghai listing next month. The Hong Kong-listed Chinese oil giant said in a statement it plans to sell 2.6 billion shares, or 5.5% of its expanded capital base, on April 12 and then list on the Shanghai Stock Exchange.
CNOOC’s U.S. shares were delisted from the New York Stock Exchange last year after Washington blacklisted the company.
H&M posts first-quarter profit, Russia clouds outlook
Sweden’s H&M is expected to return to profit in its December-February quarter as the effects of the pandemic fade. However, the closure of Russian stores and the economic impact of the war in Ukraine have made the company’s outlook more uncertain. Analysts polled by Refinitiv on average expected the world’s second-largest fashion retailer to report a pretax profit of 1.04 billion crowns ($112.2 million) for its first quarter on Thursday. H&M said sales rose 23% year-on-year, but were 11% lower than two years earlier, before the pandemic. In the same period last year, when nearly half of its stores were closed due to the second wave of the pandemic, H&M made a loss of 1.39 billion kroner.