London (AFP) - European stocks rose Wednesday but gains were capped as Russia continued its new offensive in eastern Ukraine, dealers said.

London equities rose 0.4 percent in midday deals after bumper overnight gains on Wall Street.

Frankfurt won 0.9 percent and Paris added 1.2 percent, aided by news of a return to growth in eurozone industrial output in February.

Oil rebounded slightly, having slumped the previous day on demand concerns.

- Huge uncertainty -

“There’s still a huge amount of uncertainty coming from all corners,” said OANDA analyst Craig Erlam, when asked about the impact of Ukraine.

Share price gains were “a continuation of the volatile but ultimately directionless markets we have become so accustomed to”, he cautioned.

Asia turned in a mixed showing, despite a Wall Street rally Tuesday on promising housing-starts data and solid earnings.

Europe equities and oil dropped Tuesday as Moscow launched its eastern offensive and after the International Monetary Fund slashed its global economic growth forecasts.

The IMF cut its 2022 outlook by 0.8 percentage points, largely over inflationary crises linked to the Ukraine war and the coronavirus pandemic.

- Shanghai slumps -

Shanghai’s main stocks index was Asia’s biggest faller, losing 1.4 percent as the People’s Bank of China (PBoC) kept key lending rates unchanged amid uncertainty over the impact of ongoing Chinese Covid restrictions.

Hong Kong – which plummeted on Tuesday over concerns about Beijing’s ongoing tech-sector crackdown – also ended down.

“PBoC policymakers realise the futility of cutting rates during a lockdown as policies incentivising lending will have minimal a short-term positive impact on activity so long as mobility restrictions remain in place,” noted independent analyst Stephen Innes.

Sentiment was dampened by news of slumping quarterly subscriptions for US streaming giant Netflix.

This was the first such drop for Netflix in a decade and hammered the streaming giant’s shares in after-market trading.

Analysts have said this could dent investor sentiment when New York reopens for business.

- Key figures around 1100 GMT -

London - FTSE 100: UP 0.4 percent at 7,629.81 points

Frankfurt - DAX: UP 0.9 percent at 14,280.45

Paris - CAC 40: UP 1.2 percent at 6,612.15

EURO STOXX 50: UP 1.5 percent at 3,889.25

Tokyo - Nikkei 225: UP 0.86 percent at 27,217.85 (close)

Shanghai - Composite: DOWN 1.4 percent at 3,151.05 (close)

Hong Kong - Hang Seng Index: DOWN 0.4 percent at 20,944.67 (close)

New York - Dow: UP 1.5 percent at 34,911.20 (close)

Euro/dollar: UP at $1.0840 from $1.0788 late on Tuesday

Dollar/yen: DOWN at 128.30 yen from 128.91 yen

Pound/dollar: UP at $1.3029 from $1.2998

Euro/pound: UP at 83.20 pence from 82.99 pence

Brent North Sea crude: UP 0.7 percent at $107.96 per barrel

West Texas Intermediate: UP 0.9 percent at $103.48 per barrel

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