European shares rally after Ukraine talks ease some investor fears
* FTSEurofirst 300 up 1.2 pct, bounces from Friday's dip
* Rebound led by German blue-chips
* Investor expectations growing for ECB intervention-poll (Updates prices, adds details)
By Blaise Robinson
PARIS, Aug 18 (Reuters) - European shares rallied on Monday as the market was encouraged by diplomatic efforts at the weekend to try and ease tension in Ukraine.
Russia's Foreign Ministry said on Monday a "certain progress" was achieved during talks between Russia, Germany, France and Ukraine in Berlin on Sunday, although there was no progress towards a ceasefire between government and rebel forces in eastern Ukraine.
At 1518 GMT, the FTSEurofirst 300 index of top European shares was up 1.2 percent at 1,338.83 points. Germany's DAX was up 1.7 percent.
Equities were also bolstered by mounting investor hopes that the European Central Bank will resort to asset purchases to boost inflation in the coming year, with a Reuters poll of euro money market traders putting expectations of this at 50 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 1.5 percent and 3.1 percent. Continuación...