European markets advance as investors await Ukraine-Russia updates

LONDON — European stocks moved higher on Wednesday as investors continued to monitor the latest developments in the Russia-Ukraine crisis, while digesting a slew of corporate earnings.

The pan-European Stoxx 600 added 0.8% in early trade, with autos climbing 2% to lead gains as most sectors and major bourses entered 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 modestly higher in overnight trading Tuesday 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 on Wednesday came from Barclays, Wolters Kluwer, 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.

Data releases include the latest GfK consumer sentiment index from Germany.

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