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London - Europe's main stock markets pulled back on Thursday as the US increased the pressure on Russia over Ukraine and traders took profits following a recent rally.
London's benchmark FTSE 100 index of leading shares fell 0.60% to stand at 6 565.66 points in afternoon trading.
Frankfurt's DAX 30 slid 0.42% compared with Wednesday's closing values to 9 409.22 points and in Paris the CAC 40 index gave up 0.31% to 4 371.51.
The single currency retreated to a three-week low against the dollar on heavy selling after the European Central Bank hinted at a further loosening of monetary policy in the eurozone to avert deflation, traders said.
"The two-day (stocks) rally has come to a halt... problems on the Russian-Ukrainian front are back in focus as the US stepped up with rhetoric," said Varengold Bank trader Anita Paluch.
Markets remain wary as President Barack Obama on Wednesday said that the United States and its allies needed to stand firm in opposing Moscow's takeover of Crimea.
There are fears about the long-term ramifications of the stand-off, with Europe hugely reliant on Russia for its energy.
White House
The White House on Thursday hailed the promise of an International Monetary Fund bailout for Ukraine, saying it was a key part of a package of aid to help political and economic transition in the former Soviet republic.
"This represents a powerful sign of support from the international community for the Ukrainian government, as we help them stabilise and grow their economy, and move their democracy forward," spokesman Jay Carney said during Obama's visit to Rome.
The IMF announced a $14-18bn bailout for Ukraine to avoid bankruptcy but it comes with painful and unpopular reforms.
The agreement in principle could unlock a broader package from other governments and agencies amounting to $27bn over the next two years.
And President Vladimir Putin stepped up efforts to become independent from the West, saying that Russia should create its own national payment system.
European stock indices had risen strongly on Tuesday and Wednesday as upbeat economic data had temporarily taken over from Ukraine as the main focus for dealers.
Asia
Asia's stock markets ended mixed on Thursday, with Japanese shares boosted by a weaker yen.
Analysts said the focus is moving to next week's data releases, including the Bank of Japan's quarterly tankan business sentiment survey due on Tuesday and US non-farm payrolls on Friday.
In foreign exchange trading on Thursday, the euro slid to a three-week low of $1.3741. It later gained to stand at $1.3768, which compared with $1.3781 late on Wednesday in New York.
The dollar rose to ¥102.32 from ¥102 Wednesday.
The European single currency was weaker at 82.82 British pence compared with 83.12 pence on Wednesday, while the pound climbed to $1.6624 from $1.6576.
The pound was boosted by data showing British consumers increased retail spending by 1.7% in February from the level in January when they fell more than first thought because of bad weather.
Retail sales, an important indicator of household confidence, spending power and growth, had fallen by an upwardly revised 2.0% in January, according to the Office of National Statistics.
On the London Bullion Market, the price of gold fell to $1 295 an ounce from $1 304 on Wednesday.
US stocks opened lower on Thursday, extending the prior day's losses, with tech stocks again leading the way down.
The Dow Jones Industrial Average slid 0.39% to 16 205.22 points.
The S&P 500, a broad measure of the markets, shed 0.50% to 1 843.22, while the tech-rich Nasdaq Composite Index tumbled 0.83% to 4 139.10.
Shares in Alcatel-Lucent jumped 4.3% to $3.85 after the Nasdaq-quoted French-American telecom equipment company picked up a 750-million-euro order for high-speed Internet equipment from China Mobile.
