European markets advance on strong earnings as investors await Ukraine-Russia updates

The pan-European Stoxx 600 added 0.8% by mid-afternoon trade, with autos climbing 2.5% to lead gains as most sectors and major bourses held in positive territory.

Global markets were rattled by events in Europe this week after Russian President Vladimir Putin ordered troops into two breakaway regions of eastern Ukraine. The move came after he announced Monday evening that he would recognize their independence.

The EU and U.K. announced sanctions on Russia earlier Tuesday, and the U.S. followed later in the day, with President Joe Biden announcing a first tranche of sanctions against the country, targeting Russian banks, the country's sovereign debt and three individuals.

U.S. stock market futures were higher in premarket trading on Wednesday after the S&P 500 closed in correction territory amid escalating tensions between Russia and Ukraine.

However, analysts say the outlook for Federal Reserve rate hikes after March may become less clear if Russia continues its incursion into Ukraine. U.S. Treasury yields retreated as Ukraine-Russia tensions rose, and the yield on the benchmark U.S. 10-year Treasury fell below 2% as investors sought out safe haven assets.

Earnings in focus

Earnings on Wednesday came from Barclays, Wolters Kluwer, Stellantis, Rio Tinto, Uniper, Danone, Henkel and Aston Martin Lagonda.

Barclays beat expectations as full-year net profit quadrupled in 2021, led by record performance in its corporate and investment banking division. The British lender's shares gained 5.1% by mid-afternoon deals.

Stellantis beat its profit target in the company's first year following the merger of Fiat Chrysler and Peugeot maker PSA, posting an adjusted operating profit margin of 11.8% versus a 10% target. Shares jumped 6.4%.

Dutch coffee giant JDE Peet's saw its shares rise more than 14% to lead the Stoxx 600 in early trade after posting a rise in full-year core profit that came in ahead of analyst expectations.

At the bottom of the European blue chip index, Swedish investment company Storskogen Group fell more than 18% after its fourth-quarter earnings report.

On the data front, the GfK consumer sentiment index from Germany came in at -8.1 heading into March, from -6.7 points in the previous month, as a rise in Covid-19 infection rates and concerns about inflation darkened morale in early February.

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- CNBC's Pippa Stevens contributed to this market report.