|
 Europe's benchmark FTSEurofirst 300 recovered strongly after an
early wobble to put London's FTSE Germany's DAX and France's
CAC up 1.1, 1 and 1.5 percent after euro zone manufacturing data was
revised higher.
Wall Street was expected to see a more subdued start when it resumes
later but the dollar was back on the front foot with traders eyeing
ISM manufacturing and ADP jobs data for the latest readout on the
health of the U.S. economy.
Euro zone bonds also remained in favour as the European Central Bank
pushed on with its 1 trillion euro buying plan, while oil remained
under pressure amid hopes of an Iran nuclear deal that is expected
to loosen sanctions on the OPEC member.
Currency markets stayed mostly in recent ranges after a tumultuous
few months.
After a dip in Asia, the dollar edged back up to 120.15 versus the
yen and to $1.0750 per euro after the euro made its worst ever start
to a year in Q1.
"I would be surprised if we had a similar quarter again considering
the performances of the dollar and the euro over the last few
quarters," said Derek Halpenny, European head of global markets
research at Bank of Tokyo Mitsubishi in London.
"With no policy (rate hike) announcement likely in the second
quarter from the Federal Reserve, that reduces the scope for
significant moves... Also the bulk of global easing that has helped
fuel the dollar is probably behind us now."
More signs that the ECB's stimulus programme is bearing fruit came
as euro zone manufacturing activity accelerated faster than
previously thought last month to hit a 10-month high.
DELICATE CHINA
Data from China was less robust, bolstering the view that Beijing
has to provide more stimulus to keep growth on track, with some
analysts eyeing moves to directly push down the yuan's value.
The HSBC/Markit China Manufacturing Purchasing Managers' Index (PMI)
came in at 49.6, slightly higher than a preliminary "flash" reading
of 49.2 but still below the 50-mark separating contraction from
expansion.
An employment subindex contracted for a 17th straight month, falling
to its lowest since August 2014.
[to top of second column] |
"The latest data indicate that domestic and foreign demand remains
subdued amid weaker market conditions," said Annabel Fiddes, an
economist at Markit.
Shares in Shanghai gained 1.4 percent however, on the hope of more
stimulus. The rest of Asia was subdued.
Bourses in the red included Japan, South Korea, Australia, Malaysia
and Indonesia. Japan's Nikkei sank 0.9 percent after a lacklustre
Bank of Japan business survey.
After Greece failed on Tuesday to reach an initial deal on reforms
with its lenders, Athens was the only bourse in the red in Europe
and its government bond yields inched closer to 12 percent.
The rising dollar weighed on commodity markets, helping drive nickel
to its lowest in 6 years before a bounce, copper slipped and gold
struggled at $1,180 an ounce to add to last month's 2.4 percent
loss.
The Iran talks kept the squeeze on oil markets. Brent crude for May
delivery, which fell 8 percent over the last week, was flat at
$55.10 a barrel. U.S. crude was 25 cents lower at $47.35.
Iran's senior nuclear negotiator, Abbas Araqchi, said Tehran hoped
to wrap up talks by Wednesday night. "We insist on lifting of
financial and oil and banking sanctions immediately," he told
Iranian state television.
(Additional reporting by Jacob Gronholt-Pedersen in Singapore;
Editing by Eric Meijer and Tom Heneghan)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed. |
