* FTSEurofirst 300 up 1.2 pct
* Euro STOXX 50 rises 1.3 pct
* Banks and Glencore among top performers
* Prospect of de-escalation in Ukraine dispute lifts stocks
* Equity markets bounce back from sharp fall on Monday
By Sudip Kar-Gupta
LONDON, March 4 European shares rebounded on
Tuesday from sharp losses in the previous session, with banks
and miner Glencore among the top performers, on
tentative signs of a de-escalation in belligerence between
Ukraine and Russia.
The pan-European FTSEurofirst 300 index, which fell
2.2 percent on Monday, bounced back to stand 1.2 percent higher
on the day at 1,334.54 points in early session trading.
The euro zone's blue-chip Euro STOXX 50 index,
whose 3 percent fall on Monday marked its worst decline since
June 20 last year, also rebounded by 1.3 percent to 3,094.70
Global equities fell sharply on Monday from multi-year highs
following a move by Russian troops to seize control of Ukraine's
However, stock markets recovered on Tuesday after Russian
President Vladimir Putin ordered troops involved in a military
exercise in western Russia back to base in an announcement that
appeared intended to ease East-West tension over fears of war in
"I would look to buy the market on the dip but I wouldn't
bet on too much upside in the near-term," said Hendrik Klein,
who heads Swiss high-frequency trading and asset management firm
Da Vinci AG.
Eric Bendahan, who manages European equity strategies at
Swiss bank SYZ, expected an eventual resolution to the dispute
between Ukraine and Russia.
"The market drop yesterday looked exaggerated," he said.
Glencore Xstrata rose 2.4 percent to give one of the biggest
lifts to the FTSEurofirst 300 index after it posted core profits
above market forecasts.
Banks also recovered from a sharp fall on Monday, caused by
worries over the exposure of some lenders to Ukraine and Russia,
with the STOXX Europe 600 Banking Index rising by 1.4
The banking sector and European equities in general were
further buoyed by speculation that the European Central Bank may
loosen lending conditions on Thursday, after ECB President Mario
Draghi said late on Monday that inflation in the euro zone was
"way below" the ECB's goal.
John Surplice, European equities fund manager at Invesco,
backed banks as one of his favoured sectors for this year.
"It is important to remember that the bank sector has
earnings that are more sensitive to economic growth than any
other sector. So, as the economy improves, you are going to get
this reflected in upside to earnings estimates for the banking
sector," said Surplice.