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Russia announced the start of a pullback of some forces after drills that raised U.S. and European alarm about a possible military assault on Ukraine.

Markets rallied on news of the withdrawal as investors took the move as a sign of possible de-escalation by Russia amid a major diplomatic push following weeks of warnings from the U.S. and Europe about the risks of a conflict. The Kremlin has consistently denied it plans an attack and President Vladimir Putin endorsed continued talks with the West.

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