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GLOBAL MARKETS-Europe buoyed by results, data dents Asia

Published 2015-07-23, 04:40 a/m
GLOBAL MARKETS-Europe buoyed by results, data dents Asia
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* Greece vote keeps bailout deal hopes on track
* South Korea weak econ reading hits currency
* European valuations not excessive -fund manager
* Emerging markets underperform

By Lionel Laurent
LONDON, July 23 (Reuters) - A raft of forecast-beating
corporate results kept European equities afloat on Thursday,
shrugging off declines in Asia on the back of mixed regional
data.
There was also more reason for optimism on Greece, where
Prime Minister Alexis Tsipras contained a rebellion in his
left-wing Syriza party to win parliamentary approval for reforms
required to start talks on a financial rescue deal.
ID:nL5N1020XQ
Peripheral bond yields fell and the German bund held steady,
while the euro rose to hit $1.10 for the first time in more than
a week. The dollar against a basket of six major currencies
.DXY fell 0.6 percent.
Top euro-zone equities .STOXX50E were up 0.3 percent,
slightly outperforming the broader pan-European FTSEurofirst 300
.FTEU3 index. The MSCI All-Country World index .MIWD00000PUS
also rose.
The mood in Europe contrasted with a mixed session in Asia,
where South Korea's economy recorded its weakest expansion in
six years in the second quarter, and overnight declines on Wall
Street.
"Markets are in general regaining their composure," said
Vincent Guenzi, a Paris-based portfolio manager at Cholet
Dupont.
"The earnings disappointments in the U.S. are being absorbed
in Europe, largely down to the fact that valuations are not
excessive...A debt bailout of Greece is also slowly getting
underway.
"What we are still missing is evidence of forecast upgrades
on the back of the earnings season - it's still a bit early for
that."
Emerging markets had a rougher time, with currencies
extending falls against the dollar. The Korean won hit new
3-year lows after its weak economic reading, while the
Indonesian rupiah and the Thai baht touched new 17-year and
six-year lows respectively IDR= THB= .
Commodities markets were steady, with U.S. oil CLc1 up 20
cents to $49.39 per barrel and Brent crude LCOc1 up 2 cents to
$56.15. Rising U.S. stockpiles and a strong dollar have been a
drag on oil prices.
In metals, gold edged up from a five-year low, though
bearish investors were still hovering. London copper prices
meanwhile rose as short-sellers rushed to cover their positions
in a volatile session after a bearish call from Goldman Sachs
had sent the metal to its lowest in a fortnight.

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