Morning MoneyBeat Europe: Stocks Shrug Off Turkey, Russia Tensions

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European stocks pushed higher Wednesday, recovering after Tuesday's losses as investors continued to weigh the recent escalation of geopolitical tensions.

Russian Prime Minister Dmitry Medvedev warned Wednesday that Turkey's downing of a Russian jet fighter on Tuesday had caused a dangerous deterioration in ties between Russia and the North Atlantic Treaty Organization, which Turkey is a member. He also suggested Turkey could suffer economic losses.

That said, Turkey's President Recep Tayyip Erdogan made it clear Wednesday that Turkey won't escalate matters, saying Turkey didn't initially know the jet was Russian.

The Stoxx Europe 600 gained 0.9% in early trade, after dropping 1.2% on Tuesday following reports of the downed jet.

Earlier Wednesday, most Asian markets slipped amid the escalating geopolitical tensions, though a rise in oil prices overnight lifted some energy shares in the region.

The Nikkei Stock Average closed down for the first time in four days, having risen almost 20% in less than two months. Australia's S&P/ASX 200 was down 0.6%, South Korea's Kospi lost 0.3%, and Hong Kong's Hang Seng Index fell 0.4%. The Shanghai Composite Index bucked the trend, rising 0.9%.

Watch for: U.K. Autumn Statement, U.S. initial jobless claims, U.S. durable goods orders, U.S. personal income and spending, U.S. Markit PMI services.

Market Snapshot: FTSE 100 up 0.87%, CAC 40 up 1.35% and DAX up 1.03%. Nikkei closed down 0.39% Wednesday. Brent crude down 1.13% at $45.59. Gold down 0.18% at $1073.70. EUR/USD at $1.0613. Ten-year Treasury yield lower at 2.230%, Bund yield lower at 0.493%, Gilt yield lower at 1.857%.

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From The Wall Street Journal

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Russian Prime Minister Says Relations With Turkey, NATO Are Damaged: Russian Prime Minister Dmitry Medvedev warned Wednesday that Turkey’s “criminal” downing of a Russian jet fighter had caused a dangerous deterioration in ties between Russia and NATO and as a result said Moscow may reject planned joint projects with Turkey.

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