Black Friday Sale! Save huge on InvestingProGet up to 60% off

GLOBAL MARKETS-Europe recovers from Brussels-driven losses

Published 23/03/2016, 09:17 pm
© Reuters.  GLOBAL MARKETS-Europe recovers from Brussels-driven losses
JP225
-
CSGN
-
LCO
-
FTEU3
-
MIAPJ0000PUS
-
CSI300
-

(Recasts after European markets open)

* European markets recover from losses after bomb attacks

* Dollar higher, sterling hit by Brexit concerns

* Credit Suisse cost cuts help shares

By Patrick Graham

LONDON, March 23 (Reuters) - European stock markets bounced back on Wednesday from the concerns over security that have dominated the past 24 hours, helped by a handful of more positive signals on the health of the world's major economies.

Some Asian markets fell earlier in subdued trading as investors pulled back on positions ahead of the long Easter weekend, opting for caution following the suspected Islamic State suicide bomb attacks in Brussels.

But the pan-European FTSEurofirst 300 index .FTEU3 rose half a percent as all of its major markets gained solidly, helped by a vote of approval from investors for cost cuts announced by one of Switzerland's two big international banks, Credit Suisse. CSGN.S handful of better-than-expected readings of business sentiment in Europe on Tuesday had already helped markets resist deeper falls following the bomb attacks in Brussels.

There was also further support overnight from Federal Reserve policymakers for the U.S. central bank being able to plough ahead with rises in interest rates this year. sign of resilience and perhaps a degree of pent up tolerance to such tragic events has led to a flat to mildly positive opening in Europe," said Brenda Kelly, head analyst at London Capital Group.

"(But) I would not say that risk is definitively back on."

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell almost 0.5 percent, its first decline in six days. Japan's Nikkei .N225 surrendered earlier gains to close down 0.3 percent but Chinese shares .SSEC .CSI300 gained around 0.4 percent.

Britain's pound was the bigger loser among major currencies after the Brussels attacks, hit by concern that it would bolster the campaign for a vote to leave the European Union in June's "Brexit" referendum.

It was back on the defensive against the dollar on Wednesday and derivatives allowing investors to insure themselves against sharp moves in sterling exchange rates ahead of that vote soared. GBPVOL=

The dollar has taken substantial support from the flow of comments from Fed officials over the past 48 hours, all essentially read as keeping alive the chances of a rise in its main interest rates in June.

"This week you've had U.S. inflation data tick up a bit, some hawkish comments, and then you've had that big paring back in dollar longs over the past year," Rabobank currency strategist Jane Foley said.

"That suggests to me it might be difficult for the dollar to carry on going down... The Fed is still the only central bank in rate hike mode in the G10."

Oil prices, a big driver of market sentiment over the past year, were less than 1 percent lower. LCOc1 O/R

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.