Another news released by the Financial Times on Sunday could explain Russia's willingness to find a diplomatic solution. It has allegedly asked China for economic and military assistance to fight the war in Ukraine and circumvent Western sanctions. But some commentators believe China may not be willing or able to help, as it fears US retaliation. This may mean that Russia is struggling to achieve its goals. This sent the FTSE 100 up 0.3% this morning.

Banks and insurers are among the top gainers, while British American Tobacco is down after announcing it would cut its fiscal 2022 guidance and exit Russia due to worries about the safety of its employees.

In other news, Index provider FTSE Russell said it would remove Russian companies Evraz, Polymetal International, Petropavlovsk and Raven Property Group.

Miner Rio Tinto offered to buy 49% of Canada's Turquoise Hill it does not already own for about $2.7 billion.

On Sunday, finance minister Rishi Sunak called on more companies on Sunday to wind down their existing investments in Russia and halt new investments.

 

Things to read today:

Fall of Lehman shows how unpredictable impact of Russian sanctions could be (Financial Times)

U.S. Won’t Negotiate Ukraine-Related Sanctions With Russia to Save Iran Nuclear Deal (Wall Street Journal)

IMF Head Says Russian Default No Longer an ‘Improbable Event’(Bloomberg)