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The MSCI All-Country World index climbed 0.4 percent, the
pan-European FTSEurofirst 300 index advanced 1.3 percent,
while the MSCI Emerging Market index also edged higher.
U.S. equity index futures rose around 0.5 percent and oil prices
also climbed, driven by supply disruptions in Canada and
elsewhere. [O/R]
European stock markets built on positive momentum from earlier
on in Japan, where the Nikkei <.N225> rose 2.2 percent after
Japan's Finance Minister Taro Aso reiterated his resolve to
intervene in the currency market if the yen's gains last long
enough to hurt Japan's fragile economic recovery.
Aso's comments sent the yen to its lowest level in almost two
weeks against the dollar, and reinforced the backdrop of central
banks around the world looking for ways to boost the global
economy. [FRX/]
Hampstead Capital hedge fund manager Lex Van Dam said record low
interest rates from the European Central Bank meant equities
still offered more attractive returns than cash or bonds, while
Clairinvest fund manager Ion-Marc Valahu added that he had
bought up European equity positions over the last week.
"Rates are not going anywhere, so buying any dips on the stock
market might still be the best strategy," said Van Dam.
European equities were also helped by some decent corporate
results.
Shares in Credit Suisse rose after the Swiss bank reported a
smaller-than-expected first quarter loss, while jewelry maker
Pandora surged after posting higher profits and raising its
financial outlook.
Greek shares hit their highest level in 2016 after euro zone
finance ministers offered to grant Greece some debt relief, with
the move causing Greek 10-year bond yields to fall below 8
percent for the first time in more than six months.
The offer appears to be a compromise between Germany, which does
not believe Greece needs additional debt relief, and the
International Monetary Fund, which insists it is necessary, and
will be fleshed out by deputy finance ministers by May 24.
"At the very least it appears the gap between the IMF and the
Germans appears to be narrowing and that has been very well
received by investors," said Nick Stamenkovic, bond strategist
at RIA Capital Markets.
(Additional reporting by Anirban Nag and John Geddie in London,
and Saikat Chatterjee in Hong Kong; Editing by Robin Pomeroy)
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