EUROPE MARKETS: European Stocks Rebound From Ukraine-led Selloff

By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- European stock markets partly rebounded after a sharp prior-day selloff on Tuesday after tensions between Russia and Ukraine appeared to ease as Russian troops reportedly were called back to their bases and President Vladimir Putin stressed he wouldn't use military force yet.

The Stoxx Europe 600 index rallied 1.8% to 336.36, partly recovering from a 2.3% slide on Monday.

The sharp decline on Monday came after the crisis in Ukraine intensified over the weekend, as Russian President Vladimir Putin got parliamentary approval to launch a miliary intervention on the country's southwestern neighbor.

The move was condemned by western powers and U.S. President Barack Obama warned Russia could face costly sanctions unless it ends its occupation of Ukraine's Crimean region. Additionally, president of the European Council, Herman Van Rompuy, has scheduled an extraordinary meeting for EU leaders on Thursday to discuss the situation in the country. On Tuesday, U.S. Secretary of State John Kerry was visiting Kiev to show support for the new Ukrainian government.

Tensions appeared to ease on Tuesday, however, after Russian troops sent on surprise military exercises in western and central Russia reportedly were ordered to return to their bases. The drills began last Wednesday, and some of them were near the Ukraine border, which triggered some concerns that Russia was building up for a massive incursion.

Putin said in a televised press conference that he sees "no need yet" to send troops to Ukraine, but that the use of military forces remains an option in an "extreme case." The Russian President also stressed that Ukrainian parliament's move to oust former leader Viktor Yanukovych was "unconstitutional" and that the ousted president is still the legitimate head of Ukraine.

The combination of calling back troops and Putin's comments took some heat out of the crisis, spurring optimism in the stock market, with both European indexes and U.S. stocks rising.

Russia's MICEX index jumped 5.3% to 1,356.54, after tanking 11% on Monday.

Among other country-specific indexes in Europe, France's CAC 40 index gained 2.3% to 4,387.44, while Germany's DAX 30 index put on 2.2% to 9,567.38. The U.K.'s FTSE 100 index rose 1.6% to 6,813.07.

Shares of Ashtead Group PLC jumped 12% in London after the equipment-rental company reported a 54% rise in third-quarter pretax profit.

Shares of Glencore Xstrata PLC (GLCNF) put on 2.3% after the miner said it swung to a full-year loss, but that its closely watched adjusted earnings before interest and taxes rose 34%.

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