European stocks rebound, despite Ukraine crisis

European stock markets rallied on Wednesday despite high tension over the Ukraine crisis, but heartened by strong company earnings, Chinese growth data and a positive start on Wall Street.

Shares had ended sharply lower on Tuesday as the escalating military crisis in Ukraine spooked investors, traders said.

In mid-afternoon trading, London's FTSE 100 climbed 0.44 percent to stand at 6,570.25 points compared with Tuesday's closing level, as the benchmark shares index benefited also from official data showing British unemployment had reached a five-year low point.

Frankfurt's DAX 30 won 1.11 percent to 9,275.81 points and in Paris the CAC 40 added 0.91 percent to 4,384.78.

"The return of risk appetite comes in spite of the persistent worries about the escalating situation in the Ukraine," said Ishaq Siddiqi, a market analyst at ETX Capital.

"The situation in Ukraine, although worrying as its fluid, is being put aside by financial markets who are now focused on the better China data for inspiration to snap up assets at lower levels," he added.

In Europe on Wednesday, earnings updates that were well-received by the market saw shares in supermarket giant Tesco, Britain's biggest retailer, climb 2.04 percent to 292,15 pence.

Luxury fashion brand Burberry climbed 2.32 percent to 1,455 pence.

But in Paris, Danone lost 0.92 percent to 52.78 euros after the French dairy food giant reported a drop in first-quarter sales.

Positive earnings from Yahoo and Intel after the bell pushed US markets higher at the open on Wednesday.

US markets had shaken off concerns about flaring tensions between Ukraine and Russia to end sharply higher on Tuesday on the back of upbeat retail data and more upbeat company reports.

Five minutes into trading on Wednesday, the Dow Jones Industrial Average was up 0.65 percent at 16,368.66.

The broad-based S&P 500 rose 0.61 percent to 1,854.29, while the Nasdaq Composite was the strongest gainer, adding 31.77 0.79 percent at 4,065.93.

"The bulls and bears are fighting it out for supremacy in an environment that is fertile ground for both at the moment as equity markets dance to an uncertain tune," said Michael Hewson, chief market analysts at CMC Markets UK.

Meanwhile, market players continued to closely track the Russia-Ukraine crisis.

Russian leader Vladimir Putin warned that Ukraine is on the verge of civil war, the Kremlin said Wednesday, after the Kiev government sent in troops against pro-Moscow separatists in the east of the country.

The euro climbed to $1.3836 from $1.3813 late in New York on Tuesday.

The European single currency fell to 82.32 British pence from 82.59 pence on Tuesday, while the pound advanced to $1.6807 from $1.6726.

- Gold firms -

On the London Bullion Market, the price of gold increased to $1,299 an ounce from $1,298 on Tuesday.

Asian markets mostly closed higher on Wednesday in the wake of Wall Street's gains and as Chinese economic growth came in slightly above forecasts in the first three months of the year.

Japan's Nikkei index led regional gains, with a jump of 3.0 percent, thanks to a weaker yen after the head of the country's central bank said it was on course to meet its inflation target next year.

China's National Bureau of Statistics meanwhile reported that the world's number two economy expanded 7.4 percent year-on-year in January-March.

The figure was lower than the 7.7 percent seen in the final three months of last year and marks the fourth slowdown in the past five quarters, putting China on track for its worst annual performance since 1990.

However, it was slightly up on the 7.3 percent median forecast in a survey of 13 economists by AFP.