European stocks are rallying higher ahead of further talks between Russian and Ukrainian negotiators.
The pan-European Stoxx 600 added 0.7% in early trading, with automotive stocks rising 3.7% to lead gains while basic resources declined 1.8%. German energy company Uniper (UN01) was the strongest performer in the Stoxx 600, gaining more than 8%.
Global attention remains on the war in Ukraine after intensified fighting around the capital city of Kyiv, while Russian forces bombarded cities across the country, killing civilians who are unable to escape.
Russia also attacked a Ukrainian military training center near the Polish border, killing 35 people and wounding 134. Sanctions continue to hit Russia hard with the financial fallout for Moscow’s invasion expected to come into sharper focus in coming days ahead of a scheduled sovereign bond payment.
Talks are taking place in a bid to establish a solid ceasefire and find room for any compromise between Russia and Ukraine’s demands, although previous discussions have ended in failure.
The U.S. Federal Reserve (Fed) is also in focus this week as it is expected to raise its target fed funds rate by a quarter percentage point from zero at the end of its two-day meeting on March 16.
Investors are also looking to the central bank for its new forecasts for rates, inflation, and the economy, given the uncertainty from escalated geopolitical tensions.
U.S. stock futures are up while shares in Asia-Pacific are mixed as investors continue to monitor a COVID-19 wave taking place in China.