FTSE 100 is trading up 0.74% at 7162.8
European stocks rose on Monday as investors pinned their hopes on diplomatic efforts by Ukraine and Russia to end weeks-long conflict, while shares in Volkswagen (DE:VOWG_p) surged after the German carmaker doubled its operating profit.
The pan-European STOXX 600 index gained 1.0%, extending gains from Friday when Russian President Vladimir Putin signalled a positive shift in talks with Ukraine.
By 4:10 AM ET (0810 GMT), the DAX in Germany traded 2.7% higher, the CAC 40 in France traded 1.1% higher and the U.K.’s FTSE 100 gained 0.3%.
Russia and Ukraine gave their most upbeat assessments following weekend negotiations, even as Russia attacked a base near the Polish border and fighting raged elsewhere.
Auto stocks climbed 4.1% to lead gains among sectors. Volkswagen AG (OTC:VWAGY) surged 6.6% as higher prices and a more favourable product mix boosted its operating profit.
However, China-exposed miners, which have outperformed recently, fell 1.8%, as surging COVID-19 infections in the world’s top metals consumer fanned worries over economic growth prospects.
Shares of luxury brands such as LVMH and Richemont, which depend on China for a large part of their sales, also declined.
Investors waited for policy decisions from the U.S. Federal Reserve and the Bank of England later this week, with both the central banks expected to raise interest rates.
Banks gained 2.8%, extending a rebound from one-year lows hit last week as investors ramped up expectations of rate hikes to combat soaring inflation.
Hopes of progress in peace talks sent oil prices lower. Oil has surged this month after Western sanctions against Russia over its invasion of Ukraine raised concerns about supply disruptions.
On technical fronts FTSE 100 RSI stood at 43.43 and currently it is trading below 20 and 50 days MA & above 5 days MA. So, SELL position can be taken with following target and stoploss:
TRADE SIGNAL – : FTSE 100 – SELL: 7155.70, TARGET: 7043.70, STOP LOSS : 7240.10