Euro­pean shares rise as packed earn­ings day kicks off

The Political and Business Daily - - STOCKSCAN -

THE dol­lar climbed off a five-week low and shares edged up on Tues­day as a heavy ses­sion of Euro­pean data and earn­ings showed early prom­ise be­fore this week's trio of big cen­tral bank meet­ings.

Signs that Spain's re­ces­sion is eas­ing and a pick-up in Ger­man con­sumer con­fi­dence set an up­beat tone ahead of euro zone busi­ness and con­sumer sen­ti­ment data later, and meet­ings of the ECB, US Fed­eral Re­serve and Bank of Eng­land.

It was also one of the busiest days of the Euro­pean earn­ings sea­son so far with over 40 of the re­gion's ma­jor firms an­nounc­ing re­sults.

A strong start by French util­ity EDF and Ger­man chip-maker In­fi­neon helped lift the pan-Euro­pean FTSEurofirst 300 share in­dex 0.2 per cent as Lon­don's FTSE, Frank­furt's DAX and Paris's CAC 40 climbed 0.2-0.3 per cent.

MSCI's world in­dex, which tracks 45 coun­tries, climbed 0.2 per cent as Euro­pean gains

A strong start by French util­ity EDF and Ger­man chip-maker In­fi­neon helped

lift the pan-Euro­pean FTSEurofirst 300 share in­dex 0.2 per cent as Lon­don's FTSE, Frank­furt's DAX and Paris's CAC 40

climbed 0.2-0.3 per cent.

fil­tered through.

In the cur­rency mar­ket, the dol­lar con­tin­ued to pull away from Mon­day's five-week low as in­vestors viewed its sharp drop over the last two weeks as a chance to get back in ahead of Tues­day's start of the Fed­eral Re­serve's two­day meet­ing.

"The Dol­lar In­dex is re­bound­ing from the 200 mov­ing aver­age, sug­gest­ing that a re­cov­ery is likely to de­velop," Mor­gan Stan­ley's cur­rency an­a­lysts wrote in a note.

"While the mar­ket ap­pears to be fully pre­pared for a more dovish Fed, we ex­pect the dol- lar to re­main datade­pen­dent"

Fo­cus was also on the Aus­tralian dol­lar. It hit a two-week low of $0.9085 af­ter the coun­try's cen­tral bank gover­nor said in­fla­tion would be no bar to a cut in in­ter­est rates and that the cur­rency could fall fur­ther.

The euro was flat at $1.3265. Europe's debt mar­kets also saw a quiet start with Bunds and pe­riph­eral bonds all lit­tle changed though with the ex­pec­ta­tion of more ac­tion later.

Along­side the heavy slate of data, Italy will sell up to 6.75 bil­lion eu­ros of bonds. The auc­tion is ex­pected to go smoothly al­though it comes as Sil­vio Ber­lus­coni faces a Supreme Court rul­ing that could see him banned from pub­lic of­fice, a move that could en­dan­ger Italy's shaky coali­tion govern­ment.

In Asian trad­ing, Ja­pan's Nikkei bounced 1.5 per cent as the yen eased though stock­selse­where in the re­gion fin­ished flat as China's cen­tral bank's first in­jec­tion of funds into money mar­kets since Fe­bru­ary was bal­anced by some mixed data.-

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