Russian markets stem losses

Russian stocks on Tuesday bounced back after three days of losses, with investors buoyed by signs of greater international cooperation as a probe into the Malaysian air crash begins.

After falling around 8 percent between Wednesday and Monday evening, Moscow's benchmark ruble-denominated Micex had gained 1.37 percent and the dollar-denominated RTS had risen 2.17 percent by 1220 GMT.

Overnight, the United Nations Security Council unanimously backed a resolution calling for all countries to cooperate with an investigation into the Malaysia Airlines plane crash.

The ruble also rose slightly against the euro and the dollar, with the euro worth 47.08 rubles and the dollar worth 34.92 rubles at around 1230 GMT.

"Over the last 24 hours the news flow over the MH17 incident has started to turn the corner towards a more cooperative interaction between the parties," said VTB Capital analysts in a research note.

Russian markets nosedived after the United States on Wednesday stepped up sanctions to target Russian energy giants and banks, followed by the news of the air catastrophe in rebel-held eastern Ukraine on Thursday.

Rebels along with the Ukrainian forces have since agreed a ceasefire around the crash site to allow the bodies of victims to be moved and given the black boxes to international investigators.

"The market has (a) little breathing room on the back of Germany's comments in opposition to sanctions as well as US President Barack Obama's focus on gaining access to the site instead of sanctions," Alfa Bank said in a research note.

European Union foreign ministers were on Tuesday also debating possible further sanctions against Russia, which they blame for supporting rebels in the east of Ukraine.

The announcement of the first targeted sanctions -- and most of all the fear of sanctions against entire economic sectors -- prompted massive capital flight from Russia in the spring, taking its economy to the brink of recession.