LONDON: World markets remained under pressure after a Malaysian airliner was downed near the Ukraine-Russia border and Israel stepped up a ground assault against Gaza militants.

As investors scurried into defensive assets, European shares saw more selling after falling heavily on Thursday. Demand for safe-haven German government bonds kept their yields near record lows.

Russia markets took the heaviest hit. Dollar-traded stocks in Moscow were down another 2.3 percent to put their losses for the week at more than 8 percent. The ruble recovered almost half a percent on the day but was heading for its biggest weekly loss in more than a year.

“While Ukraine, Russia and the rebels deny any involvement or responsibility, tensions will most likely continue into the weekend,” Michael Rottmann, head of fixed income strategy at UniCredit, said.

“Furthermore, Israel sending ground troops into the Gaza Strip adds to geopolitical concerns. While at current levels both Bunds and US Treasury valuations look extremely rich, it is clearly not the time to position in the opposite direction.”

There were some signs that markets were trying to steady. Some analysts wondered whether the Malaysian jet tragedy could bring the two sides in Ukraine to the negotiating table and take the heat out of the crisis.

The US called for an immediate cease-fire to allow easy access to the crash sitel. Pro-Russian separatists told the Organization for Security and Cooperation in Europe (OSCE), a security and rights body, they would ensure safe access for international experts visiting the scene.