* Russian, European shares rebound, rouble firms
* Putin says sees no need to use force in Ukraine for now
* Gold, yen and oil fall as tensions seen easing
By Herbert Lash
NEW YORK, March 4 Global equity markets and
other risk assets, including hard-hit Russian securities,
rebounded on Tuesday after Russia's president said he saw no
need to use military force in Crimea for now, remarks investors
saw as intended to ease tensions over Ukraine.
President Vladimir Putin delivered a robust defense of
Russia's actions in Crimea, but he also sought to ease East-West
tension over fears of war in the former Soviet republic. His
comments reversed most of the markets' moves on Monday.
Russian stocks jumped 5.3 percent, recouping half of
the previous day's losses, while gold and the Japanese yen
, traditionally seen as safe havens, fell. The rouble
rose 1.1 percent to 36.100 to the dollar.
Putin told a news conference that Russia's use of force in
Ukraine would be a choice of "last resort" and that sanctions
being considered against Moscow by the West would be
Stocks on Wall Street surged, outpacing Monday's losses as
the S&P 500 set a new intra-day high. European stocks rose, with
the pan-European FTSEurofirst 300 index up 1.9 percent,
making up more than half of Monday's losses.
MSCI's all-country world stocks index, which
tracks stocks in 45 countries, rose 1.2 percent.
On Wall Street, the Dow Jones industrial average rose
197.38 points, or 1.22 percent, to 16,365.41. The Standard &
Poor's 500 Index was up 24.88 points, or 1.35 percent, at
1,870.61. The Nasdaq Composite Index was up 73.04
points, or 1.71 percent, at 4,350.34.
Safe-haven government debt on both sides of the Atlantic
retreated, driving yields higher as demand for low-risk assets
"Respite with the Russia-Ukraine situation is taking some of
the flight-to-quality bid out of the (U.S.) Treasury market,"
said Robert Tipp, chief investment strategist at Prudential
Fixed Income in Newark, New Jersey.
"The rapid developments over the weekend, especially coming
amidst mixed data in the U.S., for a brief interval, took the
wind out of the sales of the risk-on trade," said Tipp.
U.S. government bonds fell, with the benchmark 10-year note
down 16/32 in price to yield 2.6636 percent.
Bund futures were 31 ticks lower at 144.83, having
hit their highest since May 2013 at 145.42 on Monday as
investors piled into top-rated assets.
Earlier in Asia, MSCI's broadest index of Asia-Pacific
shares outside Japan rose nearly 0.2 percent and
Tokyo's Nikkei closed 0.5 percent higher as some foreign
investors scooped up battered shares.
In currency markets, the euro gained 0.74 percent
to 140.33 yen, and the dollar rose 0.59 percent to 102.03
yen. Against the dollar, the euro rose 0.14 percent to $1.3753.
"Given three days' worth of bad headlines, I think the
market was just willing to take any sort of stability it can
get," said Geoffrey Yu, a strategist with UBS in London.
Gold, another traditional safe haven, fell after rallying
nearly 2 percent on Monday. Gold futures were last down
0.96 percent at $1,337.40.
Oil fell toward $109 a barrel. Brent crude oil fell
$1.85 to $109.35 a barrel. U.S. crude for April delivery
fell $1.45 to $103.47.