By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Following a sharp prior-day loss, U.K.
stocks moved firmly higher on Tuesday as tensions between Ukraine
and Russia appeared to ease after Russian troops reportedly were
ordered back to their bases and President Vladimir Putin said he
wouldn't use military force yet.
The FTSE 100 index gained 1.7% to close at 6,823.77, recouping a
1.5% loss from Monday.
The U.K. benchmark followed a positive trend seen in European
and U.S. equities, triggered by developments in the Ukraine/Russia
crisis. International financial markets were rattled on Monday
after Putin over the weekend got parliamentary approval to launch a
military intervention in Ukraine.
Tensions seemed 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
Additionally, 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."
Banks, which were hit hard in Monday's session, posted some of
the biggest gains on Tuesday. Shares of Royal Bank of Scotland
Group PLC (RBS) rose 2.5%, Barclays PLC (BCS) picked up 2.1%, and
sector heavyweight HSBC Holdings PLC (HSBC) advanced 1.5%.
Shares of Ashtead Group PLC jumped 13% after the
equipment-rental company reported a 54% rise in third-quarter
pretax profit.
Also rising, shares of Glencore Xstrata PLC (GLCNF) put on 1.7%
after the miner said it swung to a full-year loss, but reported its
closely watched adjusted earnings before interest and taxes rose
34%.
Precious miners headed south, as gold and silver prices lost
momentum on the latest developments in Ukraine. Shares of Randgold
Resources Ltd. lost 1.5%, and Fresnillo PLC slid 4.7%. Fresnillo
also reported a 70% drop in full-year profit.
On the data front in the U.K., the Markit/CIPS construction
purchasing managers index showed activity in the sector increased
for a 10th month in a row in February. The construction PMI came in
at 62.6, down from a 77-month high of 64.6 in January. A level
above 50 signals expansion.
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