European stocks extend gains as Ukraine hands over black boxes

European shares fell in midday European trades Tuesday, after posting three days of losses, as worries over ongoing tensions in Ukraine and the Gaza Strip eased and investors digested a slew of earnings reports.

As of 07:26 EST:

- STOXX Europe 600 gained 0.83 percent to 340.82 points

- Euro Stoxx 50 added 0.98 percent to 3,167.26 points

Ukraine`s pro-Russian rebels surrendered the flight recorder (Black) boxes of Malaysia Airlines flight MH-17 and the bodies of 298 people on board when it was shot down over militant-held territory last week.

Tensions between Russia and the West remained high in the wake of the downing of a Malaysian airliner last week.

The European Union (EU) foreign ministers are expected to approve further sanctions against a range of Russian later Tuesday in response to the suspected downing of a Malaysia Airlines jetliner by Moscow-backed rebels in eastern Ukraine.

Investors await the outcome of a meeting between EU foreign ministers in Brussels.

Separately, hopes for a ceasefire in Gaza mounted after U.S. Secretary of State John Kerry arrived in Cairo Monday night to work out a cease-fire in the 14-day-old conflict even as Israel kept up its assaults in the Gaza Strip.

- British FTSE 100 was up 0.71% to 6,776.39 points

- Germany`s DAX edged 0.74% higher to 9,682.39 points

- France’s CAC 40 index rose 0.73% to 4,336.02 points

In economic releases, data released earlier in the day showed UK budget deficit widened to 36.1 billion pounds in the three months to June from 33.7 billion pounds in the same period a year earlier.

Investors will also be watching monthly U.S. inflation data followed by home sales later in the day.