European stocks rebound as Ukraine rebels hand over black boxes


LONDON, July 22 (Reuters): European markets rode a global rebound in risk appetite on Tuesday helped by the first signs of cooperation from Ukraine's pro-Russian separatists over the downed Malaysian Airlines plane.

After days of uncertainty, a train carrying the remains of some of the almost 300 victims was heading for Ukrainian government territory and flight recorders had been passed to Malaysian authorities by separatist leaders.

It helped settle the recent market nerves, lifting shares both in Europe and Asia and pushing back many safe-haven assets like the yen, gold and government bonds that have been in demand over the last week.

Europe's FTSEurofirst 300 index was up 0.7 per cent as the main bourses in London, Frankfurt and Paris all climbed, while dollar-traded Russian stocks in Moscow saw their first rise in almost two weeks.

The rouble also firmed, trading 0.5 per cent stronger against the dollar at 35.03 and the euro at 47.36.

"The separatists have reportedly met several of the key demands coming from Malaysia and Western countries," Sberbank Investment Research analysts said.

The dollar crept up 0.1 per cent to 101.48 yen, having pulled back from a low of 101.09 hit late last week, while gold dipped about two dollars to $1,305 an ounce.

The rebound in risk was also aided by more solid US company earnings and merger activity in the previous session, though analysts remained wary about Ukraine and Russia given the delicate situation.

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