European stocks finish the day up as Russia withdraws some troops from their positions.

• According to a statement from the Russian Defense Ministry, military units from the southern and western districts of Russia have started returning to their garrisons.
• The NATO chief stated that there were no indications of de-escalation from the Russian side on the ground.
• On Tuesday, Glencore, Engie, Randstad, and DSM reported on how earnings remain a significant factor in determining individual share price movements in Europe.

European stocks finished higher on Tuesday following Russia's announcement that it was withdrawing some troops from deployment bases, potentially signaling a de-escalation of tensions on the borders of Ukraine.

Healthcare stocks led gains in the pan-European index, which provisionally ended up 1.3%, with almost all sectors and major bourses entering positive territory.

On Tuesday, Igor Konashenkov, the Russian Defense Ministry spokesman, announced that military units from the southern and western districts of Russia had started returning to their garrisons, potentially easing the tense geopolitical standoff between Russia and the West over Ukraine.

Markets were gripped by fears that Russia could invade Ukraine in the coming days, despite the Kremlin's repeated denial of such claims.

On Tuesday, NATO chief Jens Stoltenberg informed reporters that while there were reasons for hope regarding the situation in Ukraine, the military alliance had not observed any evidence of de-escalation from the Russian side on the ground.

Stoltenberg's comments mirrored warnings from the U.S. and its allies that a Russian attack on Ukraine could be imminent, making the situation the most serious security crisis in Europe for decades.

On Monday, the United States announced the closure of its embassy in Kyiv and the relocation of staff to Lviv due to the rapid increase in Russian forces at Ukraine's border.

The markets worldwide have been affected by the escalation of tensions in eastern Europe and the possibility of the U.S. Federal Reserve tightening monetary policy more aggressively than anticipated, due to the highest annual inflation rate since 1982.

On Tuesday, Credit Suisse's chief global strategist, Philipp Lisibach, stated on CNBC that a confirmed de-escalation would positively impact risk assets following a period of uncertainty and volatility.

If we have a resolution to the geopolitical issues we face, the global economy will likely take a breather, risky market elements can recover, and the cyclicality and value trade should do well. European equities, which have been under pressure, are expected to outperform specifically.

On Tuesday, Glencore, Engie, Randstad, and DSM reported earnings in Europe.

The German food delivery company surged 14% to top the Stoxx 600 index, while the Swiss banking software company dropped around 8% after failing to meet fourth-quarter earnings expectations.

In New York, the stock market began trading with a rise of over 1.5%, following the positive trend set by shares on Wall Street across the Atlantic.

The euro zone's GDP grew 0.3% in the fourth quarter, resulting in a 4.6% year-on-year increase, according to initial flash estimates released on Tuesday. This was a slowdown from the previous quarter due to the reintroduction of social restrictions to control the omicron Covid-19 variant's spread.

According to Hussain Mehdi, macro and investment strategist at HSBC Asset Management, the release confirms that the bloc experienced a slowdown at the end of last year due to the exhaustion of easy wins from re-opening and the emergence of omicron, which led to the re-imposition of restrictions in countries.

In the first quarter, the economy is expected to remain weak due to the likelihood of the omicron variant continuing to impact it. However, the full year prospects for 2022 remain positive, as the health situation improves and we anticipate that inflation and supply chain issues will ease later in the year.