Star Metro - European stocks rebound sharply on bargain hunting

Frankfurt's benchmark DAX index and the Paris CAC 40 each soared about five percent in late morning deals.

Outside the eurozone, London's FTSE 100 jumped 1.5 percent, despite earlier Asian losses.

"European markets rebound as investors fish for bargains," summarised Russ Mould, investment director at AJ Bell.

Brent crude fell but held near $124 per barrel, one day after the United States and Britain moved to ban imports of Russian crude as part of Western sanctions on Moscow.

- 'Dead cat bounce' -

"It's more than likely a dead cat bounce," OANDA analyst Craig Erlam told AFP in reference to surging European stocks.

A "dead cat bounce" is a market term referring to a rebound that briefly interrupts a prolonged downturn.

"We appear to be seeing a temporary corrective move," Erlam said, predicting the rebound would not last as Russia continues to wage war on Ukraine.

"The invasion is still happening, sanctions are still being imposed and oil prices are still high," he noted.

"None of that is conducive with a sustainable stock market recovery."

Major Asian markets declined Wednesday as investors dwelled on Washington's Russian oil and gas ban.

EU nations, which receive roughly 40 percent of their gas imports and one quarter of their oil from Russia, opted to set a goal of cutting their Russian gas imports by two-thirds.

European natural gas prices languished far below this week's record peak, despite fears over the region's reliance on Russian gas.

Europe gas reference Dutch TTF slid 18 percent to 175.75 euros per megawatt hour, having leapt at the start of this week to an all-time high at 345 euros.

Brent had spiked to $139 on Monday -- about $8 short of an all-time record -- in expectation of the US embargo.

Dealers warn of more markets volatility as Russia showed no sign of letting up on its assault on Ukraine.

- $240 oil? -

Prices could rocket further if more nations slap sanctions on Russian crude, according to Bjornar Tonhaugen, head of oil markets at Rystad Energy.

"Oil prices could hit $240 per barrel this summer in the worst-case scenario if Western countries roll out sanctions on Russia's oil exports en masse," Tonhaugen said.

"Market volatility is at an all-time high, with ... the expectation that supply will further tighten due to restrictive sanctions on Russian energy from the West."

The crisis has also fuelled fears that the fragile global recovery from Covid-19 will be replaced by a period of stagflation, in which inflation surges and economies flatline or contract.

Haven investment gold declined Wednesday, one day after hitting a near-record $2,070 per ounce -- the highest since August 2020.

- Key figures around 1125 GMT -

Frankfurt - DAX: UP 5.1 percent at 13,486.53 points

Paris - CAC 40: UP 4.9 percent at 6,256.33

London - FTSE 100: UP 1.8 percent at 7,091.04

EURO STOXX 50: UP 5.1 percent at 3,685.28

Tokyo - Nikkei 225: DOWN 0.3 percent at 24,717.53 (close)

Hong Kong - Hang Seng Index: DOWN 0.7 percent at 20,627.71 (close)

Shanghai - Composite: DOWN 1.1 percent at 3,256.39 (close)

New York - Dow: DOWN 0.6 percent at 32,632.64 (close)

Brent North Sea crude: DOWN 3.3 percent at $123.67 per barrel

West Texas Intermediate: DOWN 3.3 percent at $119.65

Euro/dollar: UP at $1.0966 from $1.0899 Tuesday

Pound/dollar: UP at $1.3167 from $1.3104

Euro/pound: UP at 83.29 pence from 83.18 pence

Dollar/yen: UP at 115.87 yen from 115.67 yen

burs-rfj/lth

P.Beaulieu--SMC