PARIS Aug 18 European shares rallied in early
trade on Monday, reversing the previous session's losses, helped
by easing worries over geopolitical risks from Ukraine and Iraq.
Ukrainian forces have raised their national flag over a
police station in the city of Luhansk that was for months under
rebel control, Kiev said on Sunday, in what could be a
breakthrough in Ukraine's efforts to crush pro-Moscow
Also reassuring investors, Russia's Foreign Ministry said on
Monday a 'certain progress' was achieved during talks between
Russia, Germany, France and Ukraine in Berlin on Sunday on ways
to end the military conflict in eastern Ukraine.
At 0704 GMT, the FTSEurofirst 300 index of top
European shares was up 1.1 percent at 1,337.66 points.
The pan-European index had lost 0.5 percent on Friday and
Germany's DAX had dropped 1.4 percent after news that
Ukrainian forces had destroyed a Russian military column in
Ukrainian territory fuelled fears of an escalation in the
(Reporting by Blaise Robinson, editing by Tricia Wright)