Europe: Stocks surge at the open

[LONDON] European stock markets opened sharply higher on Wednesday (Mar 16) following a rally in Asia as investors track the war in Ukraine, Covid lockdowns in China and a key US Federal Reserve meeting.

London's FTSE 100 was up 1.3 per cent at 7,265.53 points while the eurozone's main markets were up more than 2 per cent, with Frankfurt at 14,189.48 points and Paris at 6,486.91.

European markets had fallen on Tuesday after Asian equities sank over concerns about the resurgence of Covid in China.

Oil prices also plunged over fears about demand in China, a major crude consumer.

But the war in Ukraine remains a major focus for investors.

Michael Hewson, chief market analyst at CMC Markets, warned that "any rally is likely to find itself pushing against the headwinds of headlines out of Ukraine, as well as the prospect that Russia might default on a bond payment later" on Wednesday.

Moscow is due to pay US$117 million on 2 dollar-denominated bonds but sanctions have raised concerns about its ability to service its debt. AFP