European markets trade higher; Ukraine war remains in focus

LONDON — European stocks traded slightly higher Thursday as investors keep an eye on developments in the war between Russia and Ukraine.

The pan-European Stoxx 600 index was trading 0.4% higher with most dectors in positive territory apart from basic resources, financial services, healthcare, insurance and utilities stocks.

Shares of Nestle were up 2.2% after the food group confirmed its margin and sales growth targets for 2022 while shares of engineering group ABB were up 4.9% after the company posted a big jump in orders during the engineering and technology company's first quarter.

AkzoNobel was one of the best performers on the Stoxx 600 index, with its shares up 5% after the Dutch paints and coatings maker reported stronger-than-expected quarterly core earnings as higher pricing helped offset supply chain issues, a Covid resurgence in China and the impact of Russia's invasion of Ukraine, Reuters reported.

The war in Ukraine remains at the forefront of market participants' minds in Europe, with the second phase of the conflict, focusing on the Donbas region in eastern Ukraine, fully underway now.

Russia has set a new ultimatum for surrender in the heavily destroyed city of Mariupol, where Ukrainian forces and reportedly hundreds of civilians are holed up in the Azovstal steel plant. Meanwhile, officials in Ukraine continue to call for more weapons support and faster delivery as Russia intensifies its bombardment of the Donbas.

United Nations Secretary-General Antonio Guterres asked Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy if they would take meetings with him in their respective capitals.

U.S. stock futures rose in overnight trading as investors digested more quarterly reports from the likes of Tesla and United Airlines. Weekly jobless claims are also slated for release on Thursday.

In Asia-Pacific markets overnight, shares were mixed as investors continue to watch China's Covid-19 situation along with moves in the Japanese yen.

Investors are watching for signs of policy support from Chinese authorities as the mainland continues to grapple with its most severe Covid wave since the initial outbreak in 2020. Its strict zero-Covid policy has raised questions about China's economic outlook.

— CNBC.com staff contributed to this market report.