Global Markets European stocks claw back ground as markets steady

Business & Markets 2013
Written by Reuters
Monday, 27 May 2013 15:55
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LONDON (May 27): European stocks, bonds and the dollar traded in a
calmer fashion on Monday after last week's turbulence, though another
three percent dive in Japan's Nikkei kept investors on edge.
Last week's shakeout of equity, bond and currency markets was
triggered by concerns the U.S. Federal Reserve could wind in its
support sooner that had been expected, weak China data and doubts
over how low Japan will allow the yen to go.
With UK and U.S. markets both closed for public holidays, European
equity and bond markets saw a quieter than usual start to the week.
The FTSEurofirst 300 index of top European shares started up 0.3
percent as last week's falls tempted buyers, while demand for
safe-haven 10-year German government bond futures eased.
The dollar was also steadier, though it dipped to 101.00 against the yen
as the latest steep fall in Japanese equities saw investors continue to
unwind their dollar hedges and head for bonds. The euro was little
changed at $1.2940.
"Markets are currently experiencing difficulty fully and precisely
understanding both the pace of global growth and the implications of
central banks' activism," Credit Agricole said in a note.
"Expectations cannot remain stable for long and so investors should be
prepared for periods of higher volatility in particular asset classes," they
added.
In commodity markets, Brent crude slipped towards $102 per barrel, extending last week's 2 percent drop, as a weak
economic outlook in a well-supplied market pressured prices. The broader market nerves also helped gold firm as it looked to
build on last week's best run in a month. - Reuters