Russian turmoil knocks back European equities

miércoles 17 de diciembre de 2014 10:53 GYT

* FTSEurofirst 300 down 0.8 pct, halts Tuesday's rebound

* Hard-hit Greek bourse up as new political vote looms

* Fears about Russia financial turmoil peg back stocks

By Sudip Kar-Gupta

LONDON, Dec 17 (Reuters) - European shares fell on Wednesday, reversing part of Tuesday's recovery, as a new drop in oil prices and financial turmoil in Russia hit the region's main stock markets.

However, the hard-hit Greek market bounced up ahead of a tight parliamentary vote that will trigger elections unless the Greek Prime Minister can win backing from independents and smaller parties that have so far rejected helping his coalition.

This week's slump in the Russian rouble has revived memories of 1998, when the rouble collapsed and sparked a sell-off in European equities. Germany's DAX, which has many companies that export to Russia, plunged nearly 40 percent in 2 1/2 months during the 1998 crisis.

Brent crude oil also traded below $60 a barrel on Wednesday, near 5-1/2 year lows, as major oil producers signalled they would maintain output despite a supply glut and faltering demand in Russia and Europe.

"The attack this week on the rouble has been quite violent, and the market is now pricing in a recession in Russia next year," said Arnaud Scarpaci, fund manager at Montaigne Capital.   Continuación...