March 4 - World shares and hard-hit Russian assets rebound after Russia's president ordered troops in military exercises to return to base in what was seen as a dampening down of immediate tensions in the East-West crisis over Ukraine. David Pollard reports
After a hard landing on Monday, European share markets attempted a modest take-off again - these traders in Frankfurt also celebrating Germany's carnival season with fancy dress. There were broad gains when the DAX opened - and London's FTSE Eurofirst added over a per cent in early trade. Mike Ingram of BGC Capital Markets. SOUNDBITE (ENGLISH) MIKE INGRAM, BGC CAPITAL MARKETS, SAYING: ''We have seen a broad risk-off episode in recent days ..... The perception is that the risk levels are starting to ramp down a bit, and that's why we're seeing a bit of re-risking of markets.'' Even Russia's main stock index regained four of the ten per cent it lost the day before. Helped in part by President Putin's pledge to return some troops to barracks. Patrick Armstrong of Armstrong Investments wasn't convinced. SOUNDBITE (English) Patrick Armstrong, Managing Partner, Armstrong Investment Managers, saying: ''The fact that they're withdrawing troops, they were only in Russia for military exercises, this isn't a withdrawal from the Crimea region and I think that's what you'll need to see, to see an end to this.'' And further out, markets still see plenty to worry about. SOUNDBITE (ENGLISH) MIKE INGRAM, BGC CAPITAL MARKETS, SAYING: If think if there were, was further evidence that the conflicts between Ukraine and Russia were broadening beyond the Crimean peninsula, I think the markets would be very, very concerned.'' SOUNDBITE (English) Patrick Armstrong, Managing Partner, Armstrong Investment Managers, saying: ''The likely outcome is Russia won't back down and there'll probably have to be sanctions of some sort put on them. And that's going to push energy prices higher. Economic growth in Europe is almost non-existent and the higher energy prices and sanctions on Russia I think could just choke that off so I think European equities are vulnerable to this.'' Sixty billion dollars was wiped off the value of Russian firms on Monday. Some of that value has been restored, but for now, the market comeback would appear to be what traders call a 'technical rebound' only.