European shares retreat on Ukraine tension

viernes 22 de agosto de 2014 12:37 GYT
 

* FTSEurofirst 300 down 0.3 pct, Euro STOXX 50 down 0.8 pct

* Ukraine concerns unleash volatility into market

* Traders point to dovish tone in Yellen speech

* Euro STOXX 50 halted by 200-day moving average

By Tricia Wright

LONDON, Aug 22 (Reuters) - European shares fell on Friday after a brisk two-week rally, hurt by a ratcheting-up of tensions in Ukraine, although traders said a dovish tone in a speech by U.S. Federal Reserve Chair Janet Yellen limited losses.

Souring the mood, Ukraine declared that Russia had launched a "direct invasion" of its territory after Moscow sent a convoy of aid trucks across the border into eastern Ukraine where pro-Russian rebels are fighting government forces.

But the FTSEurofirst, which fell as much as 0.7 percent in a choppy day of trade, managed to recover some of its poise to end the session down 0.3 percent at 1,351.38 points.

In a defence of her policy approach, Yellen, at a central banking conference in Jackson Hole, Wyoming, said that U.S. job markets remain hampered by the effects of the Great Recession and the Fed should move cautiously in determining when interest rates should rise.   Continuación...