GLOBAL MARKETS-Stocks rebound as Ukraine rebels deliver black boxes

Tue Jul 22, 2014 11:45am EDT

* Risk appetite rises on cooperation with Ukraine
separatists
    * S&P 500 sets new intraday high, European shares surge
    * Dollar gains as euro sinks to eight-month low

 (Adds opening of U.S. markets; changes dateline; previous
LONDON)
    By Herbert Lash
    NEW YORK, July 22 (Reuters) - Global equity markets and the
dollar rode a rebound in risk appetite on Tuesday, lifting the
S&P 500 to a record high, helped by signs of cooperation from
Ukraine's pro-Russian separatists over the downing of the
Malaysian Airlines jetliner.
    After days of uncertainty, a train carrying the remains of
some of the almost 300 victims arrived in Ukrainian government
territory and separatist leaders have given Malaysian
authorities the aircraft's flight recorders. 
    The news helped settle market nerves, lifting shares in
Asia, Europe and then on Wall Street as U.S. markets opened, and
pushing back safe-haven assets like the yen, gold and government
bonds, which have been in demand over the past week.
    MSCI's all-country equity index rose 0.69
percent, while the FTSEurofirst 300 index of leading
European shares climbed 1.35 percent to 1,374.12.
    The benchmark S&P 500 set a record intraday high, though
gains on Wall Street were not as strong as the rally on European
bourses. 
    The Dow Jones industrial average rose 66.25 points,
or 0.39 percent, at 17,117.98. The Standard & Poor's 500 Index
 was up 11.10 points, or 0.56 percent, at 1,984.73. The
Nasdaq Composite Index was up 35.97 points, or 0.81
percent, at 4,460.68. 
    While geopolitical concerns remained high as Israel pounded
targets across the Gaza Strip, saying no cease-fire was near,
the situation was viewed as no worse than on previous days of
the fighting.
    "Things have not worsened," said Tom di Galoma, head of
fixed income rates and credit trading at ED&F Man in New York.
"Equity markets globally were fairly robust, starting with Asia,
Europe, and now Wall Street."
    The euro fell to an eight-month low against the greenback,
breaking below its key support of $1.35, largely on expectations
the European Central Bank would provide more stimulus in the
coming months, lowering regional interest rates.
    The single currency also hit a 5-1/2-month low versus the
Japanese yen.
    The euro lost 0.42 percent against the dollar to
trade at $1.3466. Against the yen, the dollar rose 0.13
percent to 101.52.
    The benchmark 10-year U.S. Treasury note fell
3/32 in price to yield 2.4872 percent.
    Brent crude for September delivery rose 6 cents to
$107.74 a barrel, while U.S. oil for August delivery was
up 14 cents at $104.77 a barrel. The U.S. August contract
expires on Tuesday.
    
    

 (Reporting by Herbert Lash; Additional reporting by Marc Jones
in London; Editing by Dan Grebler)
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