European stocks bounce

European stock markets rebounded sharply on Monday as traders breathed a sigh of relief over easing tensions in east Ukraine and gains by Western-backed forces in Iraq. Frankfurt's main DAX index added 1.68 percent to end the day at 9,245.33. London's benchmark FTSE 100 gained 0.78 percent at 6,741.25 points, while in Paris the CAC 40 rose 1.35 percent to 4,230.65 points, compared with Friday's close. Europe's stock markets slid on Friday as news that Ukrainian artillery had destroyed part of a Russian military column spooked investors.
- Russia hurts eurozone exports -
In European corporate news, shares in Vivendi ended the day up 1.12 per cent after reports that Telecom Italia may offer up to 7 billion euros ($9.4 billion) for its Brazilian broadband unit GVT. Spain's Telefonica, which is already in talks for the unit, closed up 0.81 per cent in Madrid while Telecom Italia shares ended flat. On the economic front, a gloomy update from Germany's central bank on the outlook for the eurozone's biggest economy ‘has sparked speculation that the ECB will ramp up monetary easing,’ said Madden. That added to official data showing the crisis in Russia and sluggish demand from Turkey weighed on hopes for an export-led recovery in the eurozone in June. Exports from the 18-nation single currency zone dipped by 0.5 per cent in June compared with May to 162.2 billion euros, the Eurostat statistics agency said. In foreign exchange deals Monday, the euro fell to $1.3356 from $1.3397 late on Friday in New York. The European single currency inched down to 79.88 pence from 80.25 pence on Friday, while the pound rose to $1.6720 from $1.6694. The British pound won support from comments over the weekend from Bank of England governor Mark Carney that improving wage growth was not a prerequisite for increasing interest rates. They stood in contrast to a report last week, which the market concluded meant the BoE would wait until at least the start of next year before rising its record-low interest rate of 0.50 per cent. Russia's central bank, meanwhile, announced Monday it would intervene less to support the ruble as it works toward letting the currency float freely by the end of the year despite considerable turbulence due to the crisis in Ukraine. Elsewhere on Monday, the price of gold gained to $1,96.75 an ounce from $1,296 Friday on the London Bullion Market, according to AFP.