LONDON (The Deal) -- European stocks recovered on Tuesday amid relief that the Turkish downing of a Russian military jet on Tuesday hasn't triggered instant retaliation by the government of Vladimir Putin.
Meanwhile, the French households' confidence index held firm in November, although only 7% of responses were collected after the Nov. 13 terrorist attacks in Paris, according to statistics agency Insee.
In London, the FTSE 100 was up 0.79% at 6,327.11. In Germany, the DAX was up 1.24% at 11,069.36. The CAC 40 in Paris climbed 1.39% to 4,887.20.
In Istanbul, the BIST 100 was down marginally.
Reports on British Broadcasting Corp. and elsewhere said the second pilot on the downed jet is safe, having been rescued by the Syrian army. The first was reportedly killed by rebel gunfire as he parachuted out of the jet.
Tour operator Thomas Cook Group (TCKGF) , which has fallen in recent days because of fears terrorist attacks will curb tourism, was up about 9% in London after it posted its first full-year profit in five years and indicated it will start paying dividends again early in 2017 for the 2016 fiscal year.
Home builders including Barratt Developments (BTDPF) , Bellway, Persimmon, Taylor Wimpey and Crest Nicholson rose sharply in London on expectations Chancellor of the Exchequer George Osborne will later Wednesday announce £6.9 billion ($10.4 billion) in subsidies for the industry in a fall government budget update known as the autumn statement. The funding aims to get 400,000 new homes built to help address Britain's huge housing shortfall.
Engines maker Rolls-Royce Holdings (RYCEF) rose 2% after a lengthy investor presentation Tuesday by CEO Warren East, who sought to demonstrate how he will turn the company around following a string of profit warnings. Cost cuts are at the heart of his plan.
Pharmaceuticals maker Shire (SHPG) - Get Shire PLC Sponsored ADR Report fell about 1.5% after Reuters reported that it was working on a new multi-billion-dollar offer for Baxalta (BXLT) , almost four months after the target rejected its unsolicited $30 billion bid.
Japan Residential Investment Co. was up about 1.6% in London after it disclosed the emergence of a new rival suitor to challenge an agreed deal with a Blackstone Group (BX) - Get Blackstone Inc. Report affiliate. Another suitor walked earlier this month.
In Paris, the recently created building materials giant LafargeHolcim was up more than 3% after announcing its first results since the completion of its merger. Nine-month results came in below consensus expectations but the company cheered investors with a higher-than-forecast dividend.
Shares in Areva recovered from an early loss after a Figaro report that Electricite de France has cut its buyout offer from an indicative €2.7 billion ($2.9 billion). It was recently trading up more than 1%.
In Frankfurt. grocery wholesaler Metro was up well over 5% after surprising investors with a plan to increase its dividend for the financial year ended September; expectations had been for the payout to remain unchanged from last year.
Asian stocks were mixed. In Tokyo, the Nikkei 225 closed down 0.39% at 19,847.58 and the Topix fell 0.70% to 1,594.67.
In Hong Kong, the Hang Seng slipped 0.40% to 22,498.00. On mainland China, the Shanghai Composite closed up 0.88% at 3,647.93, and the Shenzhen Component index leaped 1.56% to 12,893.23.