European shares rebound on investor optimism over Ukraine

lunes 11 de agosto de 2014 06:26 GYT
 

* FTSEurofirst 300 rebounds by 1 pct

* Index had fallen 7 pct in last 2 weeks

* Banco Popolare surges after forecast-beating results

By Sudip Kar-Gupta

LONDON, Aug 11 (Reuters) - European shares rebounded on Monday from a two-week drop after investors concluded Russia would not send troops into Ukraine anytime soon.

Late on Friday, Russia's Defence Ministry said it had ended military exercises in southern Russia that the United States had called "provocative."

"The Ukraine situation appears to be stabilising. European shares took a big beating over the last couple of weeks, so we're seeing a relief rally," said Ion-Marc Valahu, a fund manager at Geneva-based firm Clairinvest.

The pan-European FTSEurofirst 300 index, which had fallen some 7 percent over the last two weeks, rose 1 percent to 1,319.26 points. The euro zone's blue-chip Euro STOXX 50 index also rose 1.1 percent to 3,038.73 points. Germany's DAX outperformed, rising 1.5 percent.

Worries about the impact of Western sanctions against Russia had pushed the DAX down by around 11 percent from a record high of 10,050.98 points in late June, since many top German companies have significant business ties to Russia.   Continuación...