European Indices Volatile After Shock Russian Rate Hike; Repsol Falls on Talisman Deal

Major European stock indices erase earlier gains on Tuesday amid widespread volatility after an unexpected 6.5 percentage-point rate rise by Russia’s central bank that fails to stem a decline in the ruble. Oil prices continue to decline, pushing energy stocks lower. Spanish oil producer Repsol slips after announcing a long-awaited agreement to buy Talisman Energy for $12.9 billion including debt. But shares in BT, Deutsche Telekom and Orange, the one-time state telecom monopolies on both sides of an imminent $19.6 billion deal for the U.K.’s EE wireless services provider, hold up on news of exclusive talks.