Commodity stocks keep Europe buoyant as Russia gas supply concerns linger

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, April 26, 2022. REUTERS/Staff

April 27 (Reuters) – European shares steadied on Wednesday on the back of commodity stocks, while Russian energy giant Gazprom halting gas supplies to Bulgaria and Poland and a plunge in German consumer morale kept gains in check.

The pan-European STOXX 600 (.STOXX) rose 0.2%, reversing opening losses that took it to a fresh six-week low.

Gazprom (GAZP.MM) halted gas supplies to Bulgaria and Poland for failing to pay for gas in roubles in the Kremlin’s toughest response so far to crippling sanctions from the West over the Ukraine conflict. read more

“Gas supplies are at the forefront today … and the move shows how dramatically Russia can take action to limit supplies,” Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said.

Miners (.SXPP) and oil stocks (.SXEP) extended gains for a second straight day, while defensive sectors such as utilities (.SX6P) and food and beverage stocks (.SX3P) were the biggest decliners.

Earnings spurred big moves in stocks, with Deutsche Bank (DBKGn.DE) down 5.3% after warning that the Russia-Ukraine conflict could hurt full-year results, even as it posted a better-than-expected jump in quarterly profit. read more

Meanwhile, Lloyds Banking Group (LLOY.L) gained 2.1% following a quarterly profit beat as Britain’s largest mortgage lender largely shrugged off the country’s worsening cost of living crisis. read more

A survey showed German consumer morale is set to plunge to a historic low in May as the conflict in Ukraine leads to soaring costs and dashes hopes of a post-pandemic recovery. read more

Concerns around slowing economic growth, inflation and the events in Ukraine, coupled with the prospect of aggressive monetary policy tightening by major central banks have sapped risk appetite, putting the benchmark STOXX 600 index on track to end the month 3% lower despite some upeat earnings.

Mercedes-Benz (MBGn.DE) rose 3.6% after posting higher earnings as high prices made up for supply chain troubles. read more

Reporting by Anisha Sircar in Bengaluru; Editing by Shounak Dasgupta

Our Standards: The Thomson Reuters Trust Principles.