London (AFP) - European equities attempted to rebound Tuesday from recent Ukraine-driven losses, while nickel prices rocketed to a record peak on Russian supply fears and oil soared.
Frankfurt rose 0.8 percent and Paris climbed by 0.9 percent, while London added 0.4 percent in afternoon trading, despite Asian losses.
Wall Street barely budged at the open, with sentiment dented by Russia's ongoing invasion of Ukraine.
The London Metal Exchange suspended trade in nickel after the base metal spiked to a record $101,365 per tonne as Russian supply concerns sparked sharp volatility.
Oil prices surged as the United States was reportedly moving forward with a ban on Russian crude imports without its European allies.
'Pause for breath'
"Stocks across Europe are mostly rising, as the bears pause for breath," said City Index analyst Fiona Cincotta.
"Broadly speaking, the mood in the market has improved today as headlines from eastern Europe have slowed."
Asian markets, however, fell further Tuesday as investors try to assess the impact of the Ukraine war on the world economy.
As Russia's invasion of its neighbour continues, commodity prices have been sent to record or multi-year highs, forcing observers to re-evaluate their outlook for the global recovery.
Monday's session saw a sea of red after the United States said it was considering banning the import of crude from Russia, the world's number three producer, sending the price of Brent to almost $140 for the first time since 2008.
"Sanctions against Russia's oil exports would further squeeze an already tight global oil market, with some analysts expecting as much as a five-million-barrel supply shortfall if Russian exports are blocked," said Michael Zarembski at Charles Schwab brokerage.
While US media reported Tuesday the Biden administration will go forward with a ban, European nations which are heavily dependent upon Russian oil and gas plan instead to sharply reduce imports.
Roughly 40 percent of European Union gas imports and one quarter of its oil come from Russia.
Moscow warned that in retaliation for sanctions imposed on it for the invasion, it could cut off natural gas supplies to Europe via the Nord Stream 1 pipeline.
European gas prices hit records Monday, while other commodities sourced from Ukraine and Russia also rallied, with wheat at an all-time high.
Stagflation
The Ukraine crisis comes just as uncertainty was rising owing to surging prices caused by a spike in demand for oil, tight supplies and pandemic-induced supply chain snarls, among other things.
Markets remain fearful of stagflation -- a vicious mixture of low economic growth and elevated inflation.
"There are fears we are heading for a period of stagflation in the eurozone given the energy crunch and the region's exposure to Russia," noted ThinkMarkets analyst Fawad Razaqzada.
Europe gas reference Dutch TTF fell 4.1 percent to 217.80 euros per megawatt hour on Tuesday, one day after striking a record 345 euros.
- Key figures around 1330 GMT -
London - FTSE 100: UP 0.4 percent at 6,990.12 points
Frankfurt - DAX: UP 0.8 percent at 12,930.31
Paris - CAC 40: UP 0.9 percent at 6,034.01
EURO STOXX 50: UP 0.8 percent at 3,541.66
New York - Dow: UP 0.2 percent at 32,867.04
Tokyo - Nikkei 225: DOWN 1.7 percent at 25,790.95 (close)
Hong Kong - Hang Seng Index: DOWN 1.4 percent at 20,765.87 (close)
Shanghai - Composite: DOWN 2.4 percent at 3,293.53 (close)
Brent North Sea crude: UP 5.5 percent at $129.92 per barrel
West Texas Intermediate: UP 4.9 percent at $125.24
Euro/dollar: UP at $1.0914 from $1.0854 Monday
Pound/dollar: UP at $1.3105 from $1.3104
Euro/pound: UP at 83.23 pence from 82.83 pence
Dollar/yen: UP at 115.yen from 115.32 yen
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