GLOBAL MARKETS Shares higher, Bunds dip on central bank pledges

Business & Markets 2013
Written by Reuters
Tuesday, 28 May 2013 16:05
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LONDON (May 28): European shares rose on Tuesday and German
bond prices dipped as investors drew support from signals of ongoing
central bank stimulus.
Investors turned cautious after the U.S. Federal Reserve cast doubt on
the future of its stimulus plan last week. But both the Bank of Japan and
the European Central Bank have since reaffirmed that their expansive
policies will stay in place.
"I expect the major markets to test resistance levels of last week as
investors are still seeking higher highs and new record levels in the near
term, whilst the central banks are continuing their quantitative easing
operations," Tom Robertson, senior trader at Accendo Markets, said.
In early trading the FTSE Eurofirst 300 index of top European shares
rose 0.8 percent. That followed on from a gain of 1.4 percent in Japan's
Nikkei, which tumbled 3.2 percent on Monday.
The recovery in Tokyo stocks spurred further yen selling, leaving the
dollar up 1.2 percent against the Japanese currency at 101.86, off a
two-week low of 100.66 yen.
German Bund futures dipped as traders made way for Dutch and
Belgian debt supply later in the day. The June Bund future was 20 ticks
down at 144.06 compared with 144.26 at Monday's close.