European markets choppy as Ukraine-Russia conflict continues

LONDON — European stocks were uncertain on Wednesday as the geopolitical crisis between Russia and Ukraine continues.

The pan-European Stoxx 600 hovered fractionally above the flatline in early trade after dropping 0.9% at the open. Autos fell 2.3% while oil and gas stocks jumped 2.9% on surging oil prices.

The choppy start in Europe came after mixed trade in Asia-Pacific markets overnight, with shares in the region dented by concerns over the ongoing Russia-Ukraine conflict.

The war between the neighboring countries in Europe is leading to a surge in oil prices with international benchmark Brent crude futures up around 6.4% to $111.67 per barrel, their highest in seven years. U.S. crude futures also saw big gains, rising around 6.6% to $110.29 per barrel.

That's despite the the International Energy Agency saying Tuesday it will release 60 million barrels of oil from global reserves, in a bid to ease the current supply constraint.

European stocks closed firmly lower on Tuesday as a significant Russian military convoy headed toward Ukraine's capital Kyiv. A Russian airstrike hit Kyiv's main television tower on Monday afternoon, killing five people. Meanwhile, Russian forces continue to attack Kharkiv, Ukraine's second-largest city.

Earnings in Europe came from Atos and Signify with data releases including the euro zone's inflation rate in February and Germany's latest unemployment figures for February.

In terms of individual share price movement, British insurer Hiscox gained more than 7% in early trade to lead the Stoxx 600 after swinging to a full-year pre-tax profit for 2021 and issuing a positive outlook.

At the bottom of the European blue chip index, Nokian Tyres slid more than 14% as investor concerns about its Russian exposure continued to bite.

— CNBC's Eustance Huang contributed to this market report.