Europe shares rally as Ukraine fears ease
* FTSEurofirst 300 up 1.0 pct, bounces from Friday's dip
* Rebound led by German blue-chips (Adds Nationwide, updates prices)
By Blaise Robinson
PARIS, Aug 18 (Reuters) - European shares rallied on Monday as the threat of wider conflict in Ukraine, which had appeared to escalate on Friday, showed signs of easing.
In what may be a breakthrough in Ukraine's campaign against pro-Moscow separatists, government forces have raised their national flag over a police station in the city of Luhansk that was for months under rebel control.
Russia's Foreign Ministry said on Monday a "certain progress" was achieved during talks among Russia, Germany, France and Ukraine in Berlin on Sunday.
The upbeat sentiment on markets held fast despite the lack of an international settlement or a ceasefire.
At 1110 GMT, the FTSEurofirst 300 index of top European shares was up 1.0 percent at 1,336.28 points. Germany's DAX was up 1.4 percent.
German blue-chips - considered the most vulnerable to the tensions between the West and Russia - were among the top gainers on Monday. Continental AG, BASF and Siemens were up between 1.2 percent and 2.5 percent. Continuación...