Stocks jump as Ukraine tensions ebb

Feb 16 (Reuters): Emerging market stocks eyed their best day in one week on Wednesday, as fears of a Russian invasion of Ukraine waned.

Moscow's signal to return some troops to base from near the Ukrainian border buoyed investor sentiment, boosting emerging market stocks (.MSCIEF) by 1.4pc and weakening safe-haven bets including the dollar .

The West has responded with caution and scepticism to Russia's move, with investors still viewing it as a tentative positive for financial markets.

"We're only reading headlines but the tone has softened... the risk is still there but every day we see that the troops are leaving, or they are turning and about to leave," said Elena Lovén, senior fund manager at Swedbank Robur.

"The problem is we don't know exactly what's happening at the border."