European Stocks Snap Back As Putin Eases Tensions

(RTTNews) - European stocks rallied from early losses to finish with modest gains on Wednesday, bolstered by hopes of a diplomatic solution to the Ukraine crisis.

Russian President Vladimir Putin said Russian troops had pulled back from the Ukrainian border, and he urged separatists in eastern Ukraine to postpone a vote planned for this weekend.

Both the Euro Stoxx 50 index of eurozone bluechip stocks and the Stoxx Europe 50 index were fractionally higher.

Around Europe, the German DAX slipped 0.57 percent, France's CAC 40 rose 0.4 and the U.K.'s FTSE 100 was down 0.03 percent.

Financial stocks were in focus amid earnings reports from a number of big banks.

Commerzbank AG dropped 4.6 percent in Frankfurt as the lender reported a smaller-than-expected profit of 200 million euros in the first quarter, compared with a loss of 98 million euros in the year-ago period.

Siemens rose 2.2 percent after Rolls-Royce Holdings Plc agreed to sell its Energy gas turbine and compressor business to the German engineering giant for 785 million pounds cash. Rolls-Royce Holdings shares are down 1.3 percent in London.

HSBC Holdings Plc reported a 20 percent decline in first-quarter 2014 pre-tax profit to $6.785 billion, largely reflecting lower gains (net of losses) from disposals and reclassifications.

ING Group NV shares were down 0.6 percent in Amsterdam after the Dutch financial services company reported a loss in its first quarter, compared to a profit last year, reflecting loss related to the deconsolidation of Voya and the impact of the Dutch pension fund changes, as well as lower premium.

Crédit Agricole SA surged up 6.8 percent in Paris. The French lender said that its first-quarter net income Group share rose to 868 million euros, from 469 million euros in the prior year quarter.

German factory orders declined unexpectedly in March due to a sharp decrease in foreign demand, official data revealed. Another report from Markit Economics showed that Germany's construction sector shrunk for the first time in a year in April, as companies reported decline in new orders and weaker employment growth.

French manufacturing output unexpectedly fell in March, after rising in the previous month, figures from the statistical office INSEE showed.

Slack in the labor market and low inflation will keep U.S. interest rates near zero even as the broader economy gradually improves, Federal Reserve Chair Janet Yellen told Congress Wednesday morning.

In remarks prepared for her semi-annual testimony before the Joint Economic Committee, Yellen expressed concerns about slow wage growth, high levels of long-term unemployment and those people working part-time who want full-time work.