EDINBURGH Aug 6 European shares fell in early
deals on Wednesday, with appetite for equities knocked back by a
resurgence in geopolitical tension over Ukraine and some weaker
than expected earnings reports.
The pan-European FTSEurofirst 300 was down 0.8
percent at 1,324.53 by 0704 GMT, with the German DAX,
whose firms are heavily dependent on Russian energy, down 1.1
Equities fell after reports that Russian troops were massing
at the eastern Ukrainian border, where pro-Moscow rebels are in
conflict with the Ukrainian government - ratcheting up
geopolitical tension in the region.
Russian President Vladimir Putin also ordered his government
to prepare retaliatory measures against the latest round of
Western sanctions, Russian news agencies reported on Tuesday.
"President Putin reportedly ordered his government to
investigate retaliatory sanctions against the EU and U.S," Stan
Shamu, market strategist at IG, said in a trading note.
"There is also renewed build-up of Russian troops at the
Ukraine border resulting in fears of Russia invading Ukraine."
The top faller on the FTSEurofirst 300 in early deals was
Hannover Re, down 3.6 percent after the German
reinsurer said its net profit rose 10 percent to 211.5 million
euros (283 million US dollar) in the second quarter, slightly
less than expected, as premiums declined.
(Reporting by Alistair Smout; Editing by Sudip Kar-Gupta)