London stocks edged higher in early trade on Tuesday, holding up better than their European counterparts, as all eyes remained firmly on the Ukraine crisis.
At 0905 GMT, the FTSE 100 was up 0.2% at 7,470.91.
Neil Wilson, chief market analyst at Markets.com, said: “The dreadful situation [in Ukraine] gets worse as heavy shelling of built-up areas shows us what is to come.
“Talks yesterday didn’t get far but the two sides have agreed to try again as a massive Russian convoy starts to encircle Kyiv. Bombing of civilians will harden Western public opinion against Russia – voters are already taking a pretty hard line across Europe. Unified public opinion complicates matters for governments who might prefer to base policy solely on the advice of their military intelligence and strategic advisors. But that is the way of things.
“For markets, this means the question of direct sanctions on oil and gas exports from Russia is a matter of when not if. Canada has already unilaterally banned Russian oil imports, though these are microscopic compared to Europe’s appetite for Russia’s crude and natural gas. Talk of a Nato-enforced no-fly zone needs to be ignored – who really wants the RAF to shoot down Russian jets and risk WW3? The problem of public opinion again…”
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