Europe midday: Shares hold gains on positive earnings reports

European shares rebounded at the open on Wednesday as bumper earnings and dividend payouts boosted sentiment despite Western sanctions against Moscow over its threats to Ukraine.

The pan-European Stoxx 600 index was up 0.49% after several straight days of losses. US futures indicated a higher opening.

Russia was hit with sanctions overnight after it ordered troops into separatist regions of eastern Ukraine. A planned summit between US and Russian leaders was cancelled by Washington as Western nations and Japan issued sanctions targeted at Moscow's financial system.

Russ Mould, investment director at AJ Bell, said the sanctions "aren’t as heavy as might have been expected and the market is apparently taking this a win amid hints (Russia President Vladimir) Putin might be open to a diplomatic solution".

"However, predicting the Russian premier’s next move is a mug’s game and unfortunately until the situation is resolved the markets are likely to remain firmly on the edge."

In equity news, shares in UK student accommodation provider Unite Group soared as it swung to a profit and reported a positive outlook.

Automakers Stellantis rose after the company reported the annual margin on adjusted operating profit climbed above its target.

Shares in French yoghurt maker Danone were up as the company reported stronger-than-expected sales growth in the last quarter of 2021.

Barclays gained 2.5% after a record annual profit and return of £2.5bn to shareholders in 2021.

Rio Tinto edged lower even as the Anglo-Australian miner declared a massive final dividend as profits surged on the back of rising commodity prices.