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European markets pull back amid doubts over latest Russian pledges over Ukraine

LONDON — European stocks are expected to open flat to lower on Wednesday following the latest round of talks between Russia and Ukraine, aimed at finding a solution to the conflict.

The U.K.’s FTSE index is seen opening 7 points higher at 7,536, Germany’s DAX 34 points lower at 14,767, France’s CAC 40 down 8 points at 6,775 and Italy’s FTSE MIB 43 points lower at 24,630, according to data from IG.

Investor sentiment was boosted on Tuesday following negotiations between Russian and Ukrainian officials in Turkey, at which Russia’s deputy defense minister claimed Moscow had decided to “drastically” cut back its military activity near Ukraine’s capital.

Alexander Fomin, who spoke following the talks in Instabul, said Russia would slow its military operations near Kyiv and Chernihiv in order for peace talks to progress. Russia previously claimed that it would reduce military operations in other parts of Ukraine but then continued its advance.

Follow our live Ukraine-Russia updates here

Growing hope for a cease-fire appeared to boost investor sentiment Tuesday, as Dow Jones Industrial Average futures rose 200 points, or 0.6%. S&P 500 futures also climbed 0.6%, while Nasdaq 100 futures climbed 0.7%. Meanwhile, the price of U.S. benchmark West Texas Intermediate crude oil, which spiked on the heels of Russia’s invasion of Ukraine, fell more than 4% to $100 per barrel.

Doubts have set in over the pledge, however, and while the Russian military has begun moving some of its troops in Ukraine away from areas around Kyiv to positions elsewhere in Ukraine, Pentagon Press Secretary John Kirby warned the troop movements do not amount to a retreat.

Shares in Asia-Pacific were mixed in Wednesday trade as investors watch for developments surrounding the war in Ukraine. Stateside, traders are keeping tabs on a slew of key economic reports, while also monitoring the Federal Reserve’s planned interest rate hikes.

The Job Openings and Labor Turnover Survey on Tuesday showed 11.3 million job openings, higher than the 11.1 million expected. The ADP will also release its private payrolls data ahead of the closely watched monthly jobs report, on Friday.

Upcoming data releases include Russia’s latest reading of consumer and business confidence. Retailer Next is set to release its latest earnings.

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— CNBC’s Amanda Macias contributed to this market report.

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