Susan Mathew and Anisha Simcar

(Reuters). European shares rose on Tuesday following the strongest signals from Wall Street and Asian markets. The peace talks between Russia, Ukraine and Ukraine gave the clearest sign of progress in negotiating an end the war.

Pan-European Index rose 1.6% to the highest level in almost a month. It also extended its gains for a third consecutive session as bonds sold off. [GVD/EUR]

All sectors saw positive growth, with automakers and banks leading the charge. They jumped respectively 5.9% and 3.8%.

Russia pledged Tuesday that it would reduce military operations in northern Ukraine and Kyiv as part of a confidence building step. In the most comprehensive formula for possible settlement of the conflict, Ukraine suggested that Ukraine adopt neutral status.

Susannah Streeter is a senior market and investment analyst. She stated that European stocks gained more than they did earlier today after the possibility of peace talks. Hargreaves Lansdown, LON:

The German two-year yield suddenly turned positive, and the U.S. Treasury yield curve for 2-year/10-year moved closer to inversion. [GVD/EUR] [US/]

While you don’t see the same movement in Germany’s treasury market as the U.S. Treasury markets, soaring inflation may prompt the European Central Bank to tighten quicker than expected, which could lead to a higher cost of living for consumers. Streeter said that the other concern is the possibility of a recession.

After Russia announced that it will accept payments in Russian roubles for gas exports, investors are also focusing on oil and gas supply. Russian gas is responsible for 40% of Europe’s total consumption. The move could lead to fan inflation and an increase in Europe’s vulnerability.

London’s gains were thwarted by 2.5% drop in the lender Barclays LON: After one of the top bank investors sold stock approximately equivalent to a 33% share, (LON)

STOXX 600 expects to finish March with modest gains, its first month of profit this year. The index will suffer its eighth consecutive quarterly loss. This is due to concerns about inflation and economic growth.

France and Germany suffered more than expected falls in consumer confidence due to the fact that government measures were not effective at reducing rising inflation or fuel prices. Surveys revealed this. [nL2N2VW0GX]

Maersk shares fell 4.1% following the statement by Maersk that the Shanghai lockdown would affect trucking services and raise transport costs. However, Maersk is the largest cement-maker in the world. Holcim After declaring its exit from the Russian market, (SIX) gained 3.9%