Europe stocks jump on plane crash probe deal

Jacques Gounon, Eurotunnel’s chairman and chief executive, speaks during a news conference to announce the company’s results in Paris yesterday. Eurotunnel shares closed down 0.10% after the company posted a loss in the first half of this year.

AFP/London

Europe’s main stock markets jumped yesterday as investors welcomed news that pro-Russian rebels had handed over the black boxes from downed flight MH17, easing concerns over the disaster.

Frankfurt’s main DAX index gained 1.27% to end at 9,734.33 points, compared to Monday’s close.

London’s benchmark FTSE 100 index closed 0.99% higher at 6,795.34 points, while in Paris the CAC 40 ended the day up 1.50% at 4,369.52.

“Markets in Europe were recuperating losses from the past few sessions due to events in Ukraine and Gaza, despite a disappointing result from Credit Suisse,” said Japer Lawler at CMC Markets. “The feeling is starting to creep in that the repercussion on markets is not going to be too long-lasting.”

The downing of the Malaysia Airlines jet last Thursday in Ukraine inflamed tensions with Russia, with Western governments saying it was shot down by pro-Moscow separatists.

Those tensions eased yesterday on news rebels had handed the plane’s two black boxes to Malaysian officials and announced a ceasefire to provide safe access for an international probe.

That helped Russian stocks to bounce back from three days of losses in which Moscow’s main index lost some 8% and boosted the rouble against the euro and the dollar.

Wall Street was also given a kick by a stream of generally solid earnings reports that suggested the US economy, the world’s largest, is continuing to pick up momentum.

In mid-afternoon trading, the Dow Jones Industrial Average advanced 0.40% to 17,120.44.

The broad-based S&P 500 gained 0.56% to 1,984.72, while the tech-rich Nasdaq Composite Index rose 0.83% to 4,461.55.

Shares in Credit Suisse closed down 0.96% after the bank posted an unexpectedly big net second-quarter loss of 700mn Swiss francs due to a huge US tax evasion fine.

French advertising giant Publicis sank 4.69% after reporting a sharp fall in profits for the first half of the year and warned of a cautious outlook for the year.

And Eurotunnel shares closed down 0.10% after the company posted a loss in the first half of the year, despite reiterating its targets for this year and next.

But the upbeat sentiment weighed on the price of gold, which is often seen as a safe-haven investment in times of trouble.

In commodity deals, gold fell to $1,310.25 per ounce from $1,311.50 on Monday.

The European single currency fell to $1.3470, down from $1.3523 late in New York on Monday.

The euro fell against the British pound, dipping to 78.97 pence from 79.19 pence

The British pound lost ground against the dollar to $1.7056 from $1.7075 on Monday.