European shares slip as Ukraine crisis deepens

viernes 25 de abril de 2014 06:10 GYT
 

* FTSEurofirst 300 down 0.4 pct, Euro STOXX 50 down 0.6 pct

* DAX underperforms again on worries over Ukraine

* Deutsche Bank hurt by report of capital hike

By Blaise Robinson

PARIS, April 25 (Reuters) - European shares fell on Friday as new signs of violence in Ukraine weighed on stock markets that had recently been buoyed by corporate takeover activity.

Ukrainian forces killed up to five pro-Moscow rebels on Thursday and Russia launched army drills near the border in response. Seven people were also injured overnight at a pro-Ukrainian checkpoint near Ukraine's Black Sea port of Odessa when an explosive device blew up.

Ukrainian Prime Minister Arseny Yatseniuk accused Russia of wanting to start World War Three by occupying Ukraine "militarily and politically", in some of the strongest language he has used.

Steen Jakobsen, Saxo Bank's chief investment officer and chief economist, warned that investors have been complacent about the crisis in Ukraine, ignoring the risks of escalation.

"The market seems willing to give the diplomatic route all chances despite the obvious violations by both parties. Overall the situation is escalating by the hour, meanwhile investors are mostly focusing instead on the Fed's tapering and the ECB's quantitative easing," he said.   Continuación...