|
 The best growth reading out of France in two years added to signs,
following better figures from Spain, that some of Europe's weaker
southern economies are picking up, though the German number missed
forecasts.
Much attention will focus on auctions of German and Italian
government debt. A radical repricing of Bunds last month was the
starting point for a rout that has spread across the world's major
bond markets and raised broader financial concerns.
Bond traders and analysts say the sales on Wednesday would have to
draw hefty demand to begin to stabilize the situation.
"Today is the big test for EGBs," said Peter Chatwell, a strategist
at Mizuho.
Europe's main stock markets were all higher, with Paris leading with
a more than 1 percent gain. Germany's DAX index gained 0.9 percent.
German 10-year bond yields, which have jumped around half a
percentage point from record lows hit in mid-April, fell 2 basis
points to 0.66 percent. The euro gained a third of a percent on the
dollar to $1.1250.
"I think people have started to do some bottom fishing already,"
Tradition broker Mike Reuter said. "I think between now and Friday
you'll see the (stock) market up unless there is some major piece of
news."
Earlier, Asian shares advanced as investors focused on hopes of
further stimulus from Beijing to prevent a sharper slowdown in the
world's second-largest economy.
MSCI's broadest index of Asia-Pacific shares outside Japan was off
session highs but still up 0.3 percent.
"Expect the pace of easing to be increased, or at least maintained,
by the authorities through the year, in order for the GDP target of
7 percent to be attained," said Chester Liaw, economist at Forecast
Pte in Singapore.
[to top of second column] |
The People's Bank of China cut its benchmark one-year lending and
deposit rates by 25 basis points on Sunday, the third cut in six
months. Economists expect more cuts to follow.
Japan's Nikkei stock index erased early losses and ended up 0.7
percent, shrugging off a weak cue from Wall Street.
Crude oil added to its overnight gains as the weaker dollar lifted
commodities denominated in the currency, and after OPEC raised
slightly its forecast for world oil demand growth.
Brent was up 0.6 percent at $67.27 a barrel after rallying 3 percent
on Tuesday, while U.S. crude rose another 1 percent to $61.35.
(Additional reporting by Kevin Yao in Beijing and Masayuki Kitano in
Singapore; 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.
 |
