Global shares slip as euro zone faces week of decisions

LONDON: Global stocks and the euro dipped on Monday as investors
cashed in some of last week's sharp gains ahead of a German ruling on
the euro zone's new bailout fund, Dutch elections and potential new
stimulus from the U.S. Federal Reserve.
The European Central Bank's
statement last week that it was prepared to buy an unlimited amount of
strained euro zone government bonds pushed European shares to a
13-month high and the euro to a four-month high on hopes it could mark
a turning point in the bloc's 2-1/2 year crisis.
The
FTSEurofirst index of European equities <.FTEU3> started the week
down 0.17 percent. The MSCI world equity index <.MIWD00000PUS>,
London's FTSE 100 <.FTSE>, Paris's CAC-40 <.FCHI> and
Frankfurt's DAX <.GDAXI> were all slightly lower. <.L>
<.EU> <.N>
German Bund futures rose in choppy early
moves, supported by strong demand in the U.S. Treasury market, with
investors betting poor jobs data at the end of last week will encourage
the Fed to announce fresh monetary stimulus at its September 12-13
meeting.
Europe faces another testing week,
with Dutch voters going to the polls and German's constitutional court
set to rule on new powers for the European Stability Mechanism, the
euro zone's new bailout fund, both on Wednesday.
Data showing China's exports grew at a slower pace than forecast last month also lowered the mood.
U.S. crude futures were down 0.1 percent at $96.32 a barrel but Brent was up 0.2 percent at $114.51.
The
euro dipped 0.3 percent to $1.2786, with traders citing profit-taking
in the wake of its rally on Friday, when the euro climbed to $1.2818 on
trading platform EBS, its strongest level in nearly four months.
"The weak payrolls report has put QE3 firmly on the agenda for this week," said Annette Beacher, head of Asia-Pacific Research at TD Securities. - Reuters