By Jemima Kelly
LONDON, Nov 17 (Reuters) - Global shares gained convincingly
on Tuesday, clawing back all the ground lost the previous day as
investors bet that Friday's attacks on Paris would have little
lasting impact on the economy.
With less nervy markets refocusing on the diverging outlooks
between the United States, where an interest rate rise is
expected next month, and a euro zone set for still looser
monetary policy, the euro EUR= fell to a seven-month trough
against a broadly stronger dollar.
Oil prices dipped after early gains, as the spotlight
returned to a global oversupply in crude and petroleum products,
with gains made after the Paris attacks and subsequent French
air strikes in Syria fading.
Having hit a six-week high on Monday, the widely tracked
CBOE volatility index, or "fear gauge", fell almost 10 percent
.VIX .
European shares were also helped by encouraging updates from
companies such as the world's second-biggest recruitment company
Randstad RAND.AS and Germany's United Internet UTDI.DE.
The FTSEurofirst 300 index was up 1.8 percent at 1,486.45
points by 0901 GMT after closing 0.2 percent higher in the
previous session. French shares .FCHI were up 1.7 percent,
after falling 0.1 percent on Monday following the attacks that
killed more than 120 people.
"European equity markets are catching the tailwind from the
U.S. after a strong close yesterday," said B Capital Wealth
Management Managing Director Lorne Baring.
"Investors are showing resilience to the recent attacks in
Paris despite mounting worries over security in Europe."
Investors are also eyeing the latest German ZEW economic
sentiment report due at 1000 GMT.
COPPER PLUNGES
Copper prices plunged to a fresh six-year low below $4,600
per tonne on Tuesday as technical dealings in Shanghai and
worries about demand from China, the world's top consumer,
triggered another round of selling in London.
The dollar's appreciation has also buffeted industrial
metals as a stronger U.S. currency makes greenback-denominated
commodities more expensive for buyers.
The euro dipped to $1.0656, its weakest since
mid-April. Gains against the single currency helped the dollar
also reach its highest in seven months against a basket of major
currencies .DXY .
"Even though investors sold the euro (in the wake of the
Paris attacks), the decline could have been a lot steeper,"
wrote Kathy Lien, managing director of FX Strategy for BK Asset
Management.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS earlier rose 1.7 percent, taking its cue from a
surge on Wall Street and bouncing from a six-week low struck the
previous day on risk aversion.
Shanghai stocks .SSEC climbed 1.4 percent, while Japan's
Nikkei .N225 added 1.6 percent, brushing a three-month peak.
The yen, which usually moves in the opposite direction to
Japanese shares and which tends to be sought in times of
geopolitical tension, edged towards a three-month low against
the dollar JPY= . That followed data on Monday that showed
Japan, the world's third-biggest economy, relapsing into
recession.
Greek bond yields hit their lowest in more than a year and
banking stocks rose about 10 percent on Tuesday after the
country's finance minister said Athens had reached an agreement
with its lenders on financial reforms.
Internationally traded Brent crude futures rose
towards $44.80 before dropping back to $44.59 a barrel.