* FTSEurofirst 300 down 0.8 pct, Euro STOXX 50 down 1.2 pct
* Poroshenko says Russian forces brought into Ukraine
* Mining shares drop as iron ore prices sink
By Blaise Robinson
PARIS, Aug 28 European stocks fell on Thursday
as renewed worries over turmoil in Ukraine prompted investors to
cash in some gains following a sharp 2-1/2 week rally.
The sell-off accelerated around midday after Ukrainian
president said Russian forces had been "brought into Ukraine".
In a statement on the presidential website, Petro Poroshenko
called an urgent meeting of the Ukraine's security and defence
council to decide the next steps to take in the crisis.
At 1110 GMT, the FTSEurofirst 300 index of top
European shares was down 0.8 percent at 1,367.14 points. The
benchmark index had surged 6.3 percent since a low hit on Aug 8.
"Geopolitics is driving the market again, and this latest
escalation in Ukraine comes as European stocks were ripe for a
pull-back," said Alexandre Baradez, chief market analyst at IG
Germany's DAX index, one of the European markets
hardest hit by the Ukrainian crisis and sanctions against
Moscow, tumbled 1.4 percent, with Siemens down 1.5
percent and Adidas down 1.6 percent.
According to Ukraine's security and defence council, the
border town of Novoazovsk and other parts of Ukraine's
south-east have fallen under the control of Russian forces who
together with rebels have been staging a counter-offensive.
Russia denies intervening in Ukraine by arming the rebels or
sending soldiers across the border. The defence ministry
declined to comment on reports of Russian tanks in Novoazovsk.
The violence in Ukraine and tensions between the West and
Russia - a major energy supplier to Europe - have muddied the
forecasts of a number of multinationals including Adidas,
Carlsberg, Henkel and Rheinmetall
Around Europe on Thursday, the euro zone's blue-chip Euro
STOXX 50 index was down 1.1 percent, France's CAC 40
down 0.8 percent and UK's FTSE 100 index down
Mining heavyweight Rio Tinto, Lonmin and
Anglo American featured among the biggest losers, down
2.5-3.3 percent, mirroring a drop in China's iron ore futures,
down nearly 3 percent on Thursday, putting spot prices on course
to sink to their weakest level since 2009.
Spot iron ore prices have fallen more than 34 percent this
year, as tighter credit in China has curbed purchases of
imported cargoes. The rout, fuelled by excess supplies, has
forced Chinese steel mills to resell some cargoes back to the
market as global miners kept on ramping up output.
Bucking the trend, shares in France's Essilor
climbed 4.9 percent after the world's largest maker of opthalmic
lenses forecast full-year revenue growth of more than 13 percent
excluding currency effects following a 7.9 percent rise in
Europe bourses in 2014: link.reuters.com/pap87v
Asset performance in 2014: link.reuters.com/gap87v
Today's European research round-up