|
 European stock markets opened higher, spurred by multi-year highs
in Asia, but the mood soured after sluggish euro zone and German
purchasing manager data followed another dire set of numbers from
France.
It meant that, overall, euro zone private sector business growth was
weaker than forecast, despite a big fall in the euro that could
support exports and the launch in March of a much-awaited sovereign
bond buying program from the European Central Bank.
"There was very little positive to take away from the French
numbers," said Timo Del Carpio a European economist at RBC in
London. "We will have to wait and see, but so far the signal is that
it is a weak start to Q2."
The euro headed lower against the dollar but European bond markets
largely shrugged off the data as they steadied after UK Gilts
<GB10YT=RR> and German Bunds <DE10YT=RR> had led a lively sell-off
on Wednesday.
 Traders were still cheering what had been another stellar session
for stocks in Asia.
Among the milestones were a 15-year peak for Japan, seven years for
both China and Taiwan and a near four-year top for South Korea.
MSCI's broadest index of Asia-Pacific shares outside Japan
<.MIAPJ0000PUS> added 0.5 percent to reach ground last trod in early
2008.
The gains came despite a dip in the HSBC China manufacturing PMI to
a one-year trough of 49.2 in April, when the consensus had been for
it to hold steady at 49.6.
Neither was the news bright from Japan where the Markit/JMMA flash
PMI fell to 49.7 in April from a final 50.3 in March.
But that merely added to speculation that further easing would be
required from central banks in both countries.
Japan's Nikkei <.N225> was up 0.3 percent while South Korea <.KS11>
gained 1.4 percent. Shanghai stocks <.SSEC> climbed 1 percent, with
investors still emboldened by a commentary in state media saying the
bull market "has just begun".
"Investors only care about the attitude of the government, which has
so far appeared tolerant (of the rise)," said Du Changchun, analyst
at Northeast Securities in Shanghai.
With U.S PMI's also due later, early futures prices pointed to a
subdued start for Wall Street after 0.4-0.5 percent gains for the
main U.S. markets on Wednesday.
[to top of second column] |
FEELING OF GILT
Sterling, which had jumped alongside UK Gilt yields on Wednesday
after minutes of the Bank of England's last policy meeting were
taken as less than dovish by a crowded market, gave back some of the
gains to sit at $1.4980 in early trading.
The New Zealand dollar took a hit after a central banker said rate
cuts could be considered if domestic demand and inflationary
pressures were to weaken.
The currency shed half a U.S. cent to $0.7562 <NZD=D4> as Reserve
Bank of New Zealand Assistant Governor John McDermott emphasized
that policy needed to stay stimulative to get inflation higher.
The euro, which lost ground to stand at $1.0684 <EUR=>, remains
stuck in the $1.0520-$1.0849 range of the past few weeks. Traders
remain sensitive to worries about Greece, but clear signals on that
front are unlikely before Monday's Eurogroup meeting.
Against the yen, the dollar was firm around 119.86 <JPY=> and on
track for its fourth straight session of gains.
In commodity markets, spot gold <XAU=> was down at $1,188.61 an
ounce having suffered its sharpest single-session loss since March 6
on Wednesday.
Oil prices were a fraction softer with Brent <LCOc1> quoted down 40
cents at $62.33 a barrel, while U.S. crude <CLc1> dipped 29 cents to
$55.87.
(Reporting by Marc Jones; editing by John Stonestreet)
[© 2015 Thomson Reuters. All rights
reserved.]
Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed. |
