LONDON, March 5 European stocks edged slightly
lower on Wednesday, steadying after wild swings during the
previous two sessions, as tensions over potential conflict in
Ukraine appeared to ease, with Adidas among the biggest fallers.
The German sporting goods retailer fell 3 percent
it warned its 2014 results would take a significant hit from
weakening emerging market currencies such as Russia's rouble.
The pan-European FTSEurofirst 300 edged lower, down
0.2 percent to 1,342.42 by 0805 GMT.
European stocks had surged on Tuesday, reversing a big
portion of the previous session's sharp losses after Russian
President Vladimir Putin said he would use force in neighbouring
Ukraine only as a last resort.
Putin's first comments on the crisis over the Ukrainian
region of Crimea, interpreted as an attempt to reduce tensions,
helped fuel a rebound in equities worldwide.
However, analysts warned there could still be volatility,
with U.S President Barack Obama saying on Monday that Russia
violated international law, warning the U.S. government would
look at a series of economic and diplomatic sanctions to isolate
"If you look at the comments last night from Obama, that
Putin is not fooling anybody... then there is still a little bit
of sensitivity in the markets," Brenda Kelly, chief market
strategist at IG, said.
"Markets are quite vulnerable to downside if we see any
escalation of what's going on in Ukraine."