Renewed Ukraine jitters spark profit taking in European shares

jueves 28 de agosto de 2014 10:55 GYT

* FTSEurofirst 300 down 0.7 pct, Euro STOXX 50 down 1.2 pct

* Poroshenko says Russian forces brought into Ukraine

* ING IM 'overweight' German stocks, citing valuation, euro

* Mining shares drop as iron ore prices sink

By Blaise Robinson

PARIS, Aug 28 (Reuters) - European stocks fell on Thursday as renewed worries over turmoil in Ukraine prompted investors to cash in some gains following a more than two-week rally.

The sell-off accelerated around midday after Ukrainian President Petro Poroshenko said Russian forces had entered Ukraine and the military conflict was worsening after Russian-backed separatists swept into a key town in the east and threatened other areas.

At 1422 GMT, the FTSEurofirst 300 index of top European shares was down 0.7 percent at 1,368.78 points. The benchmark index had surged 6.3 percent since a low hit on Aug 8.

"Geopolitics is driving the market again, and this latest escalation in Ukraine comes as European stocks were ripe for a pull-back," said Alexandre Baradez, chief market analyst at IG France.   Continuación...