European stocks fall as investors watch Ukraine

European stocks fell, after posting the biggest advance in two weeks, as investors watched the developments of the situation in Ukraine.

US index futures declined, while Asian shares rose.

Cairn Energy lost 11 per cent after saying it is suspending a buyback programme.

Scania declined 4.2 per cent after a board committee recommended rejecting Volkswagen’s takeover offer.

Kuoni Reisen advanced 6.1 per cent after Switzerland's biggest travel company posted 2013 profit that exceeded analysts' estimates.

The Stoxx Europe 600 Index lost 0.3 per cent to 325.03 at 10.11am in London. The gauge climbed 1.1 per cent yesterday, rebounding from its biggest weekly loss since January. Standard and Poor’s 500 Index futures slipped 0.2 per cent today, while the MSCI Asia Pacific Index gained 0.6 percent.

"The situation in Russia and Ukraine remains a source of insecurity for market participants," said Alessandro Fezzi, senior market analyst at LGT Bank Schweiz in Zurich.

“While the international reactions are still rather muted, investors know it could escalate, and that is the fear on the markets. In this environment, investors live from day to day due to the uncertainties of the news flow that could change daily.”

President Vladimir Putin said he supported a request from Ukraine's Crimean region to join Russia.

He will address lawmakers and regional leaders at 3pm in Moscow. Crimea voted on March 16 to join Russia, which should sign a treaty accepting the peninsula’s accession, according to an order signed by Putin and published on a government website today.

The US and European Union imposed sanctions on Russian officials and threatened further measures.

Bloomberg