LIVE MARKETS-STOXX shakes off early weakness, as Ukraine talks drive price action

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

STOXX SHAKES OFF EARLY WEAKNESS, AS UKRAINE TALKS DRIVE PRICE ACTION

European shares held broadly steady on Tuesday, managing to shake off initial weakness, with progress in Ukraine peace talks putting pressure on defence, while lifting companies with exposure to the country and boosting airlines, as crude oil prices declined.

Shares such as German tank maker Rheinmetall RHMG.DE, Sweden’s Saab SAABb.ST and Italy’s Leonardo LDOF.MI were among the top fallers on the STOXX 600, though their declines of around 4% were relatively contained as traders looked to buy the dip in a sector with a strong growth outlook.

The region-wide index .STOXX was last up 0.1%.

Airline stocks benefited with lower crude prices, with EasyJet EZJ.L up over 2%, as prospects for a Russia-Ukraine peace deal appeared to strengthen. The U.S. offered to provide NATO-style security guarantees for Kyiv, and European negotiators reported progress in talks on Monday to end Russia’s war in Ukraine, though a deal on territorial concessions remained elusive.

Among the top gainers were Austrian brick-maker Wienerberger WBSV.VI, considered a “rebuild Ukraine” play, which rose 3%, and Ukraine-exposed miner Ferrexpo FXPO.L also climbed 7%.

(Danilo Masoni)

EARLIER ON LIVE MARKETS:

BEFORE THE BELL: EUROPE TRACKS LOWER, LED BY DEFENCE CLICK HERE

MARKETS IN GRINCH-Y MOOD BEFORE DATA DELUGE CLICK HERE