* FTSEurofirst 300 up 1.7 pct, Euro STOXX 50 up 2.3 pct
* Blue-chips with big Russia exposure bounce back
* Europe's corporate earnings recovery seen intact
By Blaise Robinson
PARIS, March 4 European stocks rose on Tuesday,
reversing a big portion of the previous session's sharp sell-off
after Russian President Vladimir Putin said he would only use
force in neighbouring Ukraine as a last resort.
Putin's first comments on the crisis sought to ease
East-West tension and fears of war in the former Soviet republic
and helped fuel a rebound in equities worldwide. Markets had
earlier been cheered when Putin ordered an end to large-scale
military exercises near Russia's border with Ukraine.
European blue-chip shares with the biggest exposure to
Russia were among top gainers after being hammered on Monday.
Finnish tyre maker Nokian Renkaat rose 3.5
percent, Austrian lender Raiffeisen Bank International
gained 5.5 percent and Danish brewer Carlsberg was 2
The three companies derive respectively 26 percent, 22
percent and 17 percent of their overall revenues from Russia,
according to data from MSCI.
"Putin has managed to calm down markets, but on the ground,
nothing has really changed. Investors are a bit complacent to
buy the dip with such appetite," said Alexandre Baradez, chief
market analyst at IG France.
"A number of U.S. and European indexes are close to record
highs, which makes the market most vulnerable to negative
At 1507 GMT, the FTSEurofirst 300 index of top
European shares was up 1.7 percent at 1,341.30 points, while the
euro zone's blue-chip Euro STOXX 50 index was up 2.3
percent at 3,125.40 points.
The two benchmark indexes tumbled 2.2 and 3 percent
respectively on Monday after Russian troops seized control of
key locations in Ukraine's region of Crimea.
European shares had gained about 7 percent from a low point
in February - with key national indexes such as Germany's DAX
and UK's FTSE 100 flirting with record highs -
boosted by signs of an economic recovery in the euro zone and a
string of better-than-expected corporate results.
With Europe's earnings season drawing to an end, 56 percent
of companies have posted earnings that have met or beaten
analyst expectations, according to Thomson Reuters StarMine.
Scott Meech, co-head of European equities at Union Bancaire
Privee, said the backdrop of a gradual recovery in European
company earnings and the European economy remained intact, in
spite of the hit to markets from tensions in Ukraine.
"The fundamentals are still pretty good, and I think the
right instinct is to buy any weakness in the market," he said.
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