Live news updates: Russian stocks and ruble rebound as peace talks boost hopes

European and Asian stocks rose on Tuesday as the prospect of progress in peace talks between Russia and Ukraine boosted market sentiment, while oil prices drifted lower after dropping in the prior session.

Europe’s regional Stoxx 600 share index opened 1 per cent higher, with gains for banks and carmakers, although it remained more than 6 per cent lower for the year to date. London’s FTSE 100 rose 0.8 per cent and Germany’s regional Stoxx 600 share index added 1.2 per cent.

In Asia, Hong Kong’s Hang Seng index rose 0.9 per cent, though it also remained 6.5 per cent lower for the year. Japan̵[ads1]7;s Topix gained 0.9 per cent, while China’s CSI 300 index of Shanghai- and Shenzhen-listed shares fell 0.3 per cent.

Envoys from Moscow and Kyiv met in Istanbul on Tuesday to discuss a potential peace deal.

Many investors expect the effects of the war, including spiraling prices of commodities and metals produced in the countries, to keep weighing on financial markets, however.

“The tragic war in Ukraine has resulted in a global energy shock. We see this increasing inflation, pressuring consumers and hurting growth, especially in Europe, ”the BlackRock Institute wrote in a note to clients. “The [US central bank] has started to talk tough on inflation and has projected a large increase in rates. ”

Brent crude, the international oil benchmark, edged 0.5 per cent lower to $ 111.90 a barrel. That was about 15 per cent above its closing level of February 23, on the eve of Russia’s invasion of Ukraine, but the price surged to almost $ 140 this month. West Texas Intermediate, the US marker, lost 0.6 per cent to $ 105.28.