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 There were also signs the euro zone economy may be turning a corner
as consumer morale picked up in the bloc's largest economies and
bank lending fell at a slower place.
Central banks' battle to keep cash flowing into the financial system
to avert a deflationary spiral has driven core European government
bond yields into or close to negative territory, with German
seven-year bond yields the latest to go below zero for the first
time on Thursday.
That has pushed investors ever deeper into higher-yielding assets
like equities and the MSCI All-Country World equity index climbed to
a new record high of 434.40 points.
Bets that a U.S. rate hike might come later than expected, triggered
by comments by Fed chair Janet Yellen this week, also bolstered
views that the environment of rock-bottom rates would hold for the
near future.
"We think central bank easing efforts will continue to provide
liquidity to the markets and expect that could help drive flows into
equities globally as investors search for yield," said Mark Mobius,
emerging markets fund manager at Franklin Templeton.
A new record low of -0.003 percent for German seven-year sovereign
bonds came after Germany sold its first five-year debt with negative
yields on Wednesday and after Irish borrowing rates fell below 1
percent for the first time.
There was also good news from Germany on consumer morale, which rose
to its highest level in more than 13 years heading into March as low
oil prices fed through to households.
On equity markets, Asian shares slipped back from a five-month high,
but in Europe corporate updates from blue chips including
Anheuser-Busch Inbev, Allianz and Deutsche Telekom saw the
pan-European FTSEurofirst 300 rise 0.3 percent.
About two thirds of the way into Europe's earnings season, 55
percent of companies have met or beaten profit forecasts. Overall,
fourth-quarter earnings are expected to grow by 19.5 percent,
according to Thomson Reuters I/B/E/S, which would be Europe's best
season in 3-1/2 years.
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The financial sector was also in focus after Asia-focused bank
Standard Chartered said former JPMorgan investment bank boss
Bill Winters will take over as chief executive in June. The bank's
shares were up 2 percent.
Shares of Royal Bank of Scotland fell 4 percent, meanwhile, after
the lender reported a 2014 loss of 3.5 billion pounds.
Emerging markets got support from Yellen's comments and a steadier
U.S. dollar, with the Russian rouble strengthening for the third
straight day.
Greek equities were down more than 2 percent, with the country's
fate in focus after it said on Wednesday it would struggle to make
debt repayments to the International Monetary Fund and the European
Central Bank this year.
In commodity markets, Brent crude fell toward $61 per barrel after a
rally in the previous session, as bulging U.S. crude stockpiles
offset indications of a demand recovery.
London copper prices neared a six-week peak and gold gained for the
second day on views of a U.S. rate-hike delay.
(Editing by Susan Fenton)
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