FX.co ★ European markets mixed as investors wary of new sanctions against Russia

European stock indexes were mixed on Tuesday, with STOXX Europe 600 gaining 0.3% and reaching 463.39 points at the time of writing.

The best performing stocks on the STOXX Europe 600 are equities of renewable energy companies, such as Vestas Wind Systems (+8.1%), NEL ASA (+6.2%), and Siemens Gamesa Renewable Energy (+5.3%).

The DAX increased by 0.4%, the FTSE MIB gained 0.2%, and the IBEX 35 rose by 0.6%. The CAC 40 and the FTSE 100 lost 0.2%.

The biggest losers on the FTSE 100 are Evraz (-12.6%), Kingfisher (-2.1%), and Taylor Wimpey (-2%).

Shares of Go-Ahead Group gained 6.2% after the UK public transport company announced it could reinstate the pre-pandemic dividend policy. Furthermore, the company is planning to distribute 50-75% of underlying earnings per share as dividends to shareholders this year.

The market cap of Air France-KLM increased by 0.2% on the news that the French-Dutch company announced it would enter talks with CFM International on buying new jet engines for its airplanes.

On Monday, key European indexes advanced slightly, with the STOXX Europe 600 edging up by 0.84% to 462.19 points. The best performing stock of Monday's session was Polymetal International Plc, which gained 10.6%. The worst performing stocks were Allegro (-6.8%) and Moeller-Maersk (-5%).

The DAX increased by 0.5%, the CAC 40 advanced by 0.7%, the FTSE 100 rose by 0.3%, the FTSE MIB edged up by 0.05%, and the IBEX 35 added 0.2%.

Shares of Ryanair Holdings Plc increased by 0.9% despite falling earlier due to a disappointing earnings report from the EU's biggest budget airline. The company announced a loss of €350-400 million in the fiscal year 2022, well above the forecasted €250-450 million.

Volvo Car AB gained 6.4%, despite car sales falling by 22%. The Swedish automaker also expects component shortages to negatively impact its production.

The market cap of Delivery Hero SE soared by 10.7% after the German food delivery company attracted €1.4 billion in debt financing.

Shares of Airbus decreased by 0.8%. The company considered delaying its production plan for A350 aircraft amid sanctions against Russia.

US and Asia Pacific markets also closed in positive territory on Monday. The Hang Seng jumped by 2.1%.

Investors have become increasingly optimistic as worries over the war in Eastern Europe ease. Market players are now considering the armed conflict between Russia and Ukraine as a short-term factor.

The EU has agreed to impose its fifth sanctions package against Russia on Wednesday. Earlier, Ukraine accused Russia of massacring civilians in the town of Bucha, which was occupied by Russian armed forces. The Russian Ministry of Defense strongly denied these allegations, claiming photos and videos provided by the Ukrainian side were fabricated.

Besides personal sanctions, new restrictions against Russia are likely to include an embargo on the export of goods from Russia. EU representatives are set to discuss a ban on the coal, oil, and natural gas imports from the Russian Federation. Previously imposed sanctions against Russia have reduced the purchasing power in the European region due to rising energy prices.