European shares
saw fresh gains on Thursday after their best day in over a month and as
bets that the United States could be edging towards its first interest
rate rise kept upward pressure on global bond yields and the dollar.
At the other end of the policy spectrum, the New Zealand dollar NZD=
tumbled to a five-year low after its central bank cut interest rates
for the first time in four years and South Korean shares got a lift as
it cut rates to new a record low.
Underlying both moves was sluggish global demand, and in particular from the region's powerhouse China. Fixed asset investment there grew at its slowest rate in over 14 years new data showed, although industrial output and retail sales growth did show signs of steadying following a recent dive.
Europe's main bourses <0#.INDEXE> picked after a slow start with the region's benchmark FTSEurofirst 300 .FTEU3 last up 0.5 percent, as hopes returned that Greece was close to sealing a deal with its creditors. Athens' stock market surged more than 6 percent.
The euro EUR= helped too with it back down to $1.1250 as the dollar .DXY got a lift ahead of what are expected to be healthy U.S. jobless claims and retail sales data later that could nudge the Federal Reserve towards an September rate rise.
It would be its first hike in almost a decade and would finally mark a turn in the direction of the flow of easy money that has repeatedly driven world stocks and bond prices to record highs in recent years.
"The day is going to be dominated in the end by whether signs of spring in the U.S. economy have continued, will Americans come out and flash cash at last," said Kit Juckes head of global currency strategy at Societe Generale.
"And from everything overnight, its the chill from China. There could be further downside in Australia and New Zealand (currencies) and we could be talking about Asian FX weakness as a theme going forward."
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| People pass electronic information boards at the London Stock Exchange in the City of London October 11, 2013. |
Underlying both moves was sluggish global demand, and in particular from the region's powerhouse China. Fixed asset investment there grew at its slowest rate in over 14 years new data showed, although industrial output and retail sales growth did show signs of steadying following a recent dive.
Europe's main bourses <0#.INDEXE> picked after a slow start with the region's benchmark FTSEurofirst 300 .FTEU3 last up 0.5 percent, as hopes returned that Greece was close to sealing a deal with its creditors. Athens' stock market surged more than 6 percent.
The euro EUR= helped too with it back down to $1.1250 as the dollar .DXY got a lift ahead of what are expected to be healthy U.S. jobless claims and retail sales data later that could nudge the Federal Reserve towards an September rate rise.
It would be its first hike in almost a decade and would finally mark a turn in the direction of the flow of easy money that has repeatedly driven world stocks and bond prices to record highs in recent years.
"The day is going to be dominated in the end by whether signs of spring in the U.S. economy have continued, will Americans come out and flash cash at last," said Kit Juckes head of global currency strategy at Societe Generale.
"And from everything overnight, its the chill from China. There could be further downside in Australia and New Zealand (currencies) and we could be talking about Asian FX weakness as a theme going forward."
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