Russian stocks rise following ceasefire announcement

Russian stocks have risen to their highest level in three months following the announcement of a ceasefire agreement with Ukraine.

The main Micex index gained 2.6%, while Russian gas giant Gazprom saw its highest jump since June, rising 3.3%.

The Russian rouble also surged, up 1.4% against the dollar to 36.89 roubles.

The figures come after Ukranian president Petro Poroshenko announced he had agreed a "ceasefire process" with President Putin.

A spokesperson for the Russian President denied that a deal had been made, saying that

Russia was not a party to the conflict.

The Kremlin later said that steps towards peace had been made.

The Russian rouble has fallen 11% against the dollar this year. Last week, the currency hit its lowest rate since it was restructured in 1998.

Analysts welcomed Wednesday's rise in the currency.

"It doesn't mean that Ukraine crisis is over, but it is a step in the right direction," said James Butterfill, global equity strategist at Coutts bank.

"It reduces some uncertainty and suggests that investors will have one less tail risk to deal with."

Preliminary GDP data released last month showed the Russian economy growing at an annual rate of 0.8% in the second quarter of 2014, compared with 0.9% between January and March.

BBC business