Amid the uncertainty, investors dived into the perceived safe haven of German bonds, pushing down the country's borrowing costs to the lowest-ever interest rate of 1. 103 per cent. "A triple-dip recession in Italy, and Russian troops on the Ukrainian border weighed on European stocks in early trading, but some stronger corporate earnings in the US helped markets pull off their lows," Jasper Lawler, an analyst at CMC Markets, said.
Traders said sentiment had also been hit by news that several huge mergers had collapsed, including 21st Century Fox's bid for Time Warner and that of US wireless operator Sprint for T-Mobile. "A perfect storm of low volumes, geopolitical worries and pulled mergers is conspiring to keep markets on the back foot," Chris Beauchamp, market analyst at IG trading group, said.
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