Portugal Colonial - Global stocks rise, digesting US rate stance as oil prices dip

Crude futures had soared more than seven percent Monday amid supply worries as European leaders debated banning imports from Russia, but retreated modestly on Tuesday.

Despite the economic and political fallout from the Ukraine conflict, Wall Street stocks regained their swagger, finishing solidly higher in the wake of Monday's pullback that came after Federal Reserve Chair Jerome Powell said policymakers may have to raise rates more aggressively to combat inflation.

Main European markets also finished in the green Tuesday, Frankfurt, Paris and Milan all adding one percent while London was half a percent to the good at the close.

The market "seems to be shrugging off the inflation story and hawkish Fed," said Neil Wilson, chief market analyst at Markets.com.

Chris Beauchamp, chief market analyst at online trading platform IGA, said "equities have found the strength to move higher once more ... buoyed by Powell's confident outlook" Monday, when he said the economy has sufficient strength to withstand higher interest rates.

"Of course, if Powell’s optimism is misplaced then the reckoning will be unpleasant, but for now stock markets are still content to move higher," Beauchamp added.

Ukrainian President Volodymyr Zelensky renewed an offer of direct peace talks with Russian counterpart Vladimir Putin late Monday, while US President Joe Biden warned Russia that it will pay a "severe price" if it uses chemical or biological weapons in Ukraine.

"It seems whatever economic weakness that is starting to arise is being shrugged off as hope grows that Russia has lost momentum in the war in Ukraine," Oanda's Edward Moya said.

"The impact from this war is anyone's guess, but what we do know is that the longer it lasts, the greater the stagflation risk will be for the global economy."

In Asia, Hong Kong's main stocks index ended sharply higher, resuming last week's rally sparked by China's pledge to support the country's markets and indicated a tech crackdown was nearing an end.

Back on Wall Street, consumer discretionary stocks led the industrial sectors following results from Nike that topped analyst expectations.

The sporting giant rose 2.2 percent as strong consumer demand and good product pricing offset a hit from lower China sales.

"Nike is a pretty good bellwether for consumer stocks," said Art Hogan, chief strategist at National Securities. "Yesterday was a bit of an overreaction."

- Key figures around 2040 GMT -

New York - DOW: UP 0.7 percent at 34,807.46 (close)

New York - S&P 500: UP 1.1 percent at 4,511.61 (close)

New York - Nasdaq: UP 2.0 percent at 14,108.82 (close)

London - FTSE 100: UP 0.5 percent at 7,476.72 (close)

Frankfurt - DAX: UP 1.0 percent at 14,473.20 (close)

Paris - CAC 40: UP 1.2 percent at 6,659.41 (close)

EURO STOXX 50: UP 1.1 percent at 3,926.12 (close)

Tokyo - Nikkei 225: UP 1.5 percent at 27,224.11 (close)

Hong Kong - Hang Seng Index: UP 3.2 percent at 21,889.28 (close)

Shanghai - Composite: UP 0.2 percent at 3,259.86 (close)

Brent North Sea crude: DOWN 0.1 percent at $115.48 per barrel

West Texas Intermediate: DOWN 0.3 percent at $111.76 per barrel

Euro/dollar: UP at $1.1033 from $1.1016 Monday

Pound/dollar: UP at $1.3260 from $1.3169

Euro/pound: DOWN at 83.16 pence from 83.65 pence

Dollar/yen: UP at 120.82 yen from 119.47 yen

T.Vitorino--PC