* FTSEurofirst 300 down 0.5 pct, Euro STOXX 50 down 0.7 pct
* DAX underperforms again on worries over Ukraine
* Deutsche Bank hurt by report of capital hike
By Blaise Robinson and Sudip Kar-Gupta
PARIS/LONDON, April 25 European shares fell in
early trade on Friday as new signs of violence in Ukraine
weighed on stock markets that had been buoyed by corporate
Germany's DAX index, seen as the European market
most vulnerable to the crisis between Ukraine and Russia, was
down 0.8 percent, at 9,471.31 points.
Ukrainian forces killed up to five pro-Moscow rebels on
Thursday and Russia launched army drills near the border in
response. Seven people were also injured overnight at a
pro-Ukrainian checkpoint near Ukraine's Black Sea port of Odessa
when an explosive device blew up.
"I'm a seller here. The DAX has got the legs to come off
down to 9,250 points," said Darren Courtney-Cook, head of
trading at Central Markets Investments Management.
The DAX, which has been outperforming European stock indexes
for years, is down 1.2 percent so far this year, trailing behind
France's CAC 40, up 3.7 percent in 2014, Milan's FTSE MIB
up 14 percent and Madrid's IBEX up 4.7 percent.
Deutsche Bank featured among the biggest losers,
down 2.4 percent, hurt by a report saying the lender is
considering whether to raise as much as 5 billion euros ($6.91
billion) in capital this year to cope with European stress tests
and new capital rules.
Bucking the trend, shares in Gucci's parent Kering
rose 2.4 percent, after the company said sales trend for the
luxury brand were improving.
The pan-European FTSEurofirst 300 index, which hit
a near 6-year high of 1,355.29 points earlier this month, fell
0.5 percent to 1,337.97 points in early session trading.
The euro zone's blue-chip Euro STOXX 50 index
shed 0.7 percent, to 3,169.70 points.
"The selling pressure, sparked once again by the resurgence
of violence in Ukraine, remains relatively weak," Gerard
Sagnier, technical analyst at Aurel BGC, said. "At the same
time, there are a lot of buyers for these dips, which keeps the
market's longer-term trend alive."
European stock markets had risen on Thursday, boosted by
signs of a resurgence in corporate takeover activity.
Europe bourses in 2014: link.reuters.com/pap87v
Asset performance in 2014: link.reuters.com/gap87v
Today's European research round-up
(Editing by Alison Williams)