LONDON (The Deal) -- European and Asian markets regained some of Monday's losses on Tuesday as tensions over Russia's invasion of the Crimea seemed to subside and President Vladimir Putin ordered troops taking part in exercises on the Russian side of the border with Ukraine to return to base.
It's also become clear that European governments are less keen than the U.S. on wide-ranging sanctions -- Germany after all is Russia's largest export market and is heavily dependent on Russian gas supplies. Britain's reluctance to hurt its trade with Russia leaked out last night after an official was caught on camera going into with a briefing note saying the U.K. "should not support for now trade sanctions or close London's financial center to Russians," and opposes any discussion of contingency military. London supports visa restrictions and travel bans on key Russians instead, and a contingency plan for supplying gas to Ukraine if Russia cuts it off.
Moscow's Micex Composite index, which lost 10.8% on Monday, had regained over 4% by early afternoon there. The stock of international companies with exposure to Ukraine, which led Monday's falls, were among those which bounced back Tuesday. Russian miner and steel maker Evraz was up 4.6% by mid-morning in London. Danish brewer Carlsberg was up 1.85% and Austria's Raiffeisen Bank, which has a big presence in Ukraine was up 4.88%. Meanwhile, South Africa's Randgold, which did well on the rising gold price on Monday, was one of London's main fallers, down over 1%. The only bigger fall was from Mexican gold and silver miner Fresnillo, which also did well from the Ukrainian crisis on Monday. Fresnillo fell 8.7% to 885.5 pence this morning after releasing disappointing figures.
Frankfurt's DAX index was up 1.03% on Tuesday at 1,455.39. In Paris, the CAC 40 was up 1.44% at 4,353 and in London the FTSE 100 was up 1.1% at 6,782.02.
It was a similar story in Asia, where markets also sensed a reduction in East/West tensions. Japan's Nikkei 225 index rose 0.47% to 14,721 and Hong Kong's Hang Seng index was up 0.7% at 22,657. In China, which alone of all the major Asian markets registered a rise on Monday, the Shanghai Composite was down again on Tuesday, falling 0.18% to 2,071.47.