23.07.201403:50:16UTC+00European shares advance on waning Ukraine concerns

European shares recovered on Tuesday as indications of cooperation between pro-Russian rebels and international investigators eased the concerns of investors on the geopolitical situation in Ukraine.

The Stoxx Europe 600 added 1.3% to 342.44 at the close of trading session in London. The index had been experiencing difficulties for the past three days, being hit the hardest by the geopolitical situation in their backyard concerning a downed airplane and an hostilities on territories. It fell by 1.5% in that span of time. The United States and European Union imposed further sanctions on Russia after the prime ministers of eurozone met in Brussels. The meeting yielded the identification of more Russian tycoons and companies to be included in the sanctions. The meeting was also for the purpose of pressuring Russian President Vladimir Putin into speeding up the investigation concerning the tragic Malaysian Airlines plane crash.

The pan-European FTSEurofirst 300 Index closed with a 1.4% increase to 1,374 with almost all of its sectors and markets posting gains. UK’s FTSE 100 is also provisionally up by 1.0%. or 66.90 pips to 6,795.34. Germany’s DAX and France’s CAC 40 are up by 1.20% to 9,734.33 and 1.60% to 4,369.52 respectively. IBEX 35 is also in the bandwagon which closed higher at 10,648.90.

Broker at Tradition, Mike Reuter commented that there is a high probability that there will be “some relief early doors but with some risk-off remaining”. Reuter stated that there is no resolution to the conflict and that the turmoil in Donetsk and Gaza is still continuing.

European shares continued their ascent on the trend following the report of the Labor Department indicating the 3% increase in US consumer price index for the month of June to match the median forecast. The gauge added 0.4% last month.