European stocks had dropped sharply when markets closed on Monday amid fears of prolonged tension as Russian President Vladimir Putin considers recognising rebel Ukraine territories and intervening with Russian troops, stoking diplomatic doubt.
While the FTSE 100 leading index in London held its nerve, shedding just 0.39%, the CAC 40 in Paris, Germany's Dax 30 in Frankfurt, and exchanges in Amsterdam and elsewhere in Europe each fell by more than 2%.
Nothing else counts, analyst says
"The geopolitical risk is the predominant question, above all other considerations," said IG France analyst Alexandre Baradez as quoted by RTL.
The slide was attributed by media commentators to early optimism, deemed "premature" by the Kremlin, over diplomatic dialogue reopening between Putin and US President Joe Biden.
