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European trading started strongly with the pan-regional
FTSEurofirst 300 <.FTEU3> index up over 0.6 percent in early
deals, after a 1.4 percent jump by the Nikkei in Tokyo and a 2
to 2.5 percent rises in China's main markets had lifted Asia.
Publicis <PUBP.PA>, Sky <SKYB.L>, ARM Holdings <ARM.L> were all
up more than 4 percent after reporting results, with the overall
picture of a weaker euro and improving economic conditions -
driven by the European Central Bank's bond-buying stimulus plan
- drawing investment flows into equity markets.
Germany's closely-watched ZEW business confidence indicator, due
at 5 a.m. EDT, was expected to confirm the brighter picture in
Europe's biggest economy, with its sentiment gauge seen rising
to 55.3 from 54.8 and current conditions to 56.0 from 55.1
<ECONG7>.
"In macro terms at least, the worst of the crisis looks like it
is over for the euro zone and certainly my own 'misery indices'
are looking less bad," said Neil Williams, chief economist at
fund manager Hermes in London.
On the ZEW, he added: "The euro will have helped confidence...
but Greece should still remain on the radar with it looking like
it is going to have to restructure its debt."
Even after several rounds of negotiations, hopes are slim that
Athens will be able to convince euro zone finance ministers to
continue their financial support at the latest in a series of
meetings on Friday.
The country could run out of cash by the end of the month. On
Monday, the government ordered state entities to park spare cash
at the central bank in a bid to pay civil service salaries and
IMF loan repayments due in early May.
The euro had dropped to $1.0670 by 4 a.m. EDT, well off Friday's
peak of $1.0849, while Greece's 2-year bond yields were closing
in on 30 percent and benchmark 10-year yields rose to 13.58
percent.
An unprecedented debt default in the currency bloc could open
the way for Greece to exit the euro, though ECB Vice President
Vitor Constancio said on Monday that a country that defaults
would not have to leave the euro.
The dollar <.DXY> pushed up for a third straight day, trading at
98.385 against a currency basket.
Moving in the opposite direction, the Australian dollar tumbled
to $0.7685 from $0.7723 after the minutes of the Reserve Bank of
Australia's (RBA) April meeting showed the bank putting rate
cuts on the table.
Oil and gold prices fell back as the dollar strengthened. Brent
<LCOc1> dipped to $62.90 per barrel, while U.S. crude <CLc1>
eased to $55.94, not far from last week's four-month high of
$57.42.
(Editing by Shri Navaratnam and John Stonestreet)
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