European bourses up despite Russia’s warning on gas supply

The FTSE 100 gained 0.6%, the CAC jumped 1.6% and the DAX was 0.9% higher

European stock markets pushed higher on Tuesday despite Russia's top energy official warning that the country could cut off gas flows to Europe through the existing Nord Stream pipeline.

In London, the FTSE 100 gained 0.6% after opening, while the French CAC jumped 1.6% and the DAX was 0.9% higher in Frankfurt.

Alexander Novak, Russia’s deputy prime minister, said the Kremlin had ‘every right’ to do so in response to Germany's halting of the Nord Stream 2 gas link.

The move would significantly dent the continent's supplies as the EU gets about 40% of its gas and 30% of its oil from Russia.

Russia further warned that the price of oil could rocket to $300 a barrel if the western allies step up their economic war against Russia by banning energy imports.

Michael Hewson of CMC Markets said: In reality, Russia will have to work very hard to be sincere about anything it says given the way it has behaved over humanitarian corridors in the past few days. Throughout the crisis it has lied consistently about its intentions, which means it’s going to be hard to take anything it says at face value.

Elsewhere, Nickel surged past $100,000 a tonne amid a short squeeze on the London Metal Exchange (LME). This week alone, the commodity has jumped by as much as $72,000. The LME suspended trading in nickel on Tuesday.

It comes as UK households will be hit by a cost of living jump larger than anything seen in a generation, according to the Resolution Foundation.

It forecast that a typical household's income will fall by about £1,000 this year once the effect of inflation is accounted for.