Cyclical shares hold back European bourses on Ukraine fears
* Ukraine tensions sap appetite for risk
* Shares dependent on economic growth hit on valuation worry
* FTSEurofirst 300, Euro STOXX 50 both flat
By Francesco Canepa
LONDON, April 14 (Reuters) - Cyclical shares weighed on European bourses on Monday as tensions in Ukraine and volatile global markets prompted investors to take a more cautious stance on growth and cash in on some of the best performers of the past nine months.
Appetite for risk dried up as Ukraine's president threatened military action against pro-Russian separatists, raising the prospect of costly international sanctions and further straining investor nerves after a sharp selloff in global equities last week.
Shares in sectors which depend the most on economic activity, such as travel and leisure, tech and financial services fell between 1.5 percent and 1.9 percent, underperforming flat pan-European indexes.
The three sectors rose between 15 and 30 percent in the past year, leaving them trading at hefty premia to their 10-year average price-to-earnings multiple at a time of falling profit estimates, Datastream data showed.
"With earnings forecasts now looking not so good for 2014, people are looking at valuations," said Tom Elliott, international investment strategist at deVere Group. Continuación...