European markets pull back amid doubts over latest Russian pledges over Ukraine

European markets pull back amid doubts over latest Russian pledges over Ukraine


LONDON — European stocks retreated on Wednesday following the latest round of talks between Russia and Ukraine, aimed at finding a solution to the conflict.

The pan-European Stoxx 600 fell 0.5% in early trade, with autos shedding 1.6% to lead losses, while oil and gas stocks gained 2.1%.

In terms of individual share price movement, Finland’s Nokian Tyres fell 6%, while Sweden’s Lundin Energy added 5.5%.

Investor sentiment was boosted on Tuesday following negotiations between Russian and Ukrainian officials in Turkey, at which Russia’s deputy defense minister claimed Moscow had decided to “drastically” cut back its military activity near Ukraine’s capital.

Alexander Fomin, who spoke following the talks in Istanbul, said Russia would slow its military operations near Kyiv and Chernihiv in order for peace talks to progress. Russia previously claimed that it would reduce military operations in other parts of Ukraine but then continued its advance.

Follow our live Ukraine-Russia updates here

Growing hope for a cease-fire appeared to boost investor sentiment Tuesday, as Dow Jones Industrial Average futures rose 200 points, or 0.6%. S&P 500 futures also climbed 0.6%, while Nasdaq 100 futures climbed 0.7%. Meanwhile, the price of U.S. benchmark West Texas Intermediate crude oil, which spiked on the heels of Russia’s invasion of Ukraine, fell more than 4% to $100 per barrel.

Doubts have set in over the pledge, however, and while the Russian military has begun moving some of its troops in Ukraine away from areas around Kyiv to positions elsewhere in Ukraine, Pentagon Press Secretary John Kirby warned the troop movements do not amount to a retreat.

Stock picks and investing trends from CNBC Pro:

Shares in Asia-Pacific were mixed in Wednesday trade as investors watch for developments surrounding the war in Ukraine. Stateside, traders are keeping tabs on a slew of key economic reports, while also monitoring the Federal Reserve’s planned interest rate hikes.

The Job Openings and Labor Turnover Survey on Tuesday showed 11.3 million job openings, higher than the 11.1 million expected. The ADP will also release its private payrolls data ahead of the closely watched monthly jobs report, on Friday.

Guy Miller, chief market strategist and head of macroeconomics at Zurich Insurance, told CNBC on Wednesday that despite recent volatility, markets are following the “typical dynamic during wartime.”

“When we compare the run-into the war in Ukraine — very similar pattern to a number of crises that we’ve looked at in the past, and actually when we look at the performance of the past month or so — following that typical trajectory,” he said.

“The forward trajectory still for markets, for risk assets, is higher, but let’s be very clear: this is a highly risky situation until we’re back to the fundamentals, we hope, which is looking at inflation and looking at what interest rate policy is going to be to contain that.”

Enjoyed this article?
For exclusive stock picks, investment ideas and CNBC global livestream
Sign up for CNBC Pro
Start your free trial now

— CNBC’s Amanda Macias contributed to this market report.



Source

Ukraine destroyed more than 40 military aircraft in a drone attack deep inside Russia, official says
World

Ukraine destroyed more than 40 military aircraft in a drone attack deep inside Russia, official says

Smoke rises above the area following what local authorities called a drone attack on a military unit in the Sredny settlement, in the course of Russia-Ukraine conflict in the Usolsky district of the Irkutsk region, Russia, in this still image from a video published June 1, 2025. Governor Of Irkutsk Region | Via Reuters A […]

Read More
I’ve worked with over 1,000 kids—if you want your child to trust you, do 6 things
World

I’ve worked with over 1,000 kids—if you want your child to trust you, do 6 things

Parents want their kids to trust them. They want to be the first person their child turns to with the big stuff, the hard stuff, and the exciting stuff. They want their kids to feel safe enough to ask questions and share emotions. But none of that happens automatically, and trust doesn’t come from simply […]

Read More
Top Wall Street analysts prefer these dividend stocks for consistent returns
World

Top Wall Street analysts prefer these dividend stocks for consistent returns

The Home Depot logo is displayed outside a store on March 10, 2025 in San Diego, California. Kevin Carter | Getty Images Earnings of major U.S. companies and the uncertainty around tariffs continued to impact investor sentiment this week. While the stock market remains volatile, investors seeking consistent returns could add some attractive dividend stocks […]

Read More