Reuters - European stocks were set to open higher on Monday after data about China helped allay fears of a hard-landing in the world's second-largest economy, while the euro steadied on hopes that Europe's leaders were making some progress toward tackling the region's debt crisis.
HONG KONG (Reuters) - European stocks were set to open higher on Monday after data about China helped allay fears of a hard-landing in the world's second-largest economy, while the euro steadied on hopes that Europe's leaders were making some progress toward tackling the region's debt crisis.
LONDON: European shares rose on Monday, led higher by Germany after an upbeat report on factory activity, while the dollar steadied following signs the US economy may be emerging from a recent soft patch. Euro zone powerhouse Germany's manufacturing sector lost some momentum in April but expanded for a fifth consecutive month. In France, the sector's final PMI showed activity contracting and falling for a 12th successive month.
LONDON: Euro zone bond yields fell back on Wednesday as a rebound on global markets after China's rate cut ebbed and investors feared more stimulus may be needed to halt a slowdown in the world's second largest economy. Yields on Europe's top-rated German debt reversed a third of a 15 basis point surge seen after Tuesday's intervention by China, while world stocks failed to build on a temporary boost. The disappointing reaction in Chinese markets led to calls for further rate cuts in the months ahead, which will only weaken the yuan and export disinflation to the rest of the world.
LONDON: European shares rose on Monday, helped by an almost five percent rally in Chinese stock markets and rumours of progress in Greece's debt talks that halted sales of the euro. US stocks, which have stalled since hitting highs in mid-May, were set to open 0.3-0.5 percent higher. An at times dramatic sell-off over the past week in Shanghai, where stocks are still up almost 50 percent this year, has again focused global attention on financial risks in the world's second largest economy.
NEW YORK: Apple weighed heavily on all major US stock indexes on Tuesday as it fell for the fifth straight day, while oil steadied a day after a broad measure of commodity prices hit a 12-year low. Apple stock, down 3.1 per cent on Tuesday, is off near 15 per cent from its record high set in late April. Stocks and the dollar were little changed. US crude rose and copper edged up but the outlook for commodities continued to be clouded by concerns over a slowdown in China, the world's second-largest economy.
LONDON: European investors, jittery over China's economic health and reverberations of the euro zone crisis, kept cash allocations near three year highs but lifted exposure to European assets as immediate concerns over the Greek crisis subsided. A monthly survey of 21 European investment managers found holdings of safe-haven cash in portfolios stood at 10.1 percent in June.
The German elections came and went, with Merkel initially said to have an absolute majority, but in the end being forced to design a Grand Coalition. Still, the punditry has been tripping over each other desperate to make that result (or any other result) positive for Europe , which despite now paving the way for policy continuity, together with the latest round of less than impressive Eurozone PMIs (following the strongest China HSBC PMI in 6 months) failed to inspire appetite for risk in Europe this morning where stocks have traded mixed.
LONDON/BEIJING — Signs of an economic revival in China have raised hopes that Beijing’s targeted measures to bolster growth are having an impact but a slowdown in the eurozone will increase expectations of policy easing there.
Chinese factory activity expanded at the fastest pace in five months in May but eurozone manufacturing growth slowed more than initially thought, fuelling expectations that the European Central Bank will ease policy this week.