Europe shares bounce back as fears of Ukraine escalation ease

lunes 11 de agosto de 2014 04:42 GYT
 

* FTSEurofirst 300 up 1.1 pct, Euro STOXX 50 up 1.2 pct

* Rebound seen as technical after correction

* Banco Popolare up 8.1 pct after forecast-beating results

By Blaise Robinson

PARIS, Aug 11 (Reuters) - European shares rose in early trade on Monday, bouncing back from a sharp two-week slide and tracking a rally on Wall Street, after investors deemed Moscow was not about to send troops into Ukraine - a move which would intensify sanctions.

Late on Friday, Russia's Defence Ministry said it had ended military exercises in southern Russia which the United States had criticised as a "provocative" step, sparking a sharp rally on Wall Street.

Germany's DAX outperformed on Monday, up 1.4 percent, with Daimler up 2.2 percent and Adidas up 1.2 percent. German companies are seen as the most vulnerable to tensions between the West and Russia because of the strong economic links between the two nations.

The situation on the ground remains uncertain, though, meaning any relief rally could be fragile.

A Ukrainian military spokesman said on Monday government forces were preparing to recapture the city of Donetsk from pro-Russian separatist rebels, while at the weekend U.S. President Barack Obama and German Chancellor Angela Merkel agreed any unauthorized Russian intervention in Ukraine, even under purported 'humanitarian' auspices, would provoke "additional consequences."   Continuación...