* Europe shares rise as markets reopen after Easter, Asia
slips
* Dollar recovers poise after fall on weak data; euro, yen
down
* Oil slips as record U.S. stockpiles forecast
* Investors look to Fed chief Yellen for rate clues
By Nigel Stephenson
LONDON, March 29 (Reuters) - European shares rose on
Tuesday, shrugging off losses in Asia, while the dollar regained
its footing as investors looked to a speech by Federal Reserve
Chair Janet Yellen for clues to the interest rate outlook
following weak U.S. data.
As European markets reopened after a four-day Easter break,
oil dipped below $40 a barrel with U.S. crude stockpiles
forecast to hit record levels. This, signalling continued low
levels of inflation, helped push low-risk government bond yields
down.
But the focus was on Yellen, who was due to speak before the
Economic Club of New York at 1530 GMT. Weaker-than-expected U.S.
consumer spending data on Monday prompted analysts to suggest
the U.S. central bank would be cautious about raising rates this
year. Fed policymakers earlier this month projected two rises in
2016, with some saying the first could come next month.
"After the optimistic comments we had from other Fed
officials in the recent past, we expect Yellen to be more
balanced compared to a very dovish Fed statement," said Yujiro
Gato, currency strategist at Nomura. "Clearly that will be a
driver for the dollar today."
The pan-European Eurofirst 300 .FTEU3 stock index rose 0.6
percent, with insurers among the gainers after positive broker
comments.
The index is down some 8 percent in 2016 after a turbulent
quarter on financial markets triggered by concern over the
health of the Chinese economy, uncertainty over U.S. rates and
sharp fluctuations in the price of oil and other commodities.
Britain's FTSE 100 index .FTSE added 0.8 percent,
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS slipped 0.4 percent. Australian shares .AXJO
finished about 1.6 percent lower while Tokyo's Nikkei .N225
closed 0.2 percent lower as the week U.S. data rattled sentiment
towards exporters.
China's blue-chip CSI300 index .CSI300 closed down 1.1
percent and the Shanghai Composite Index .SSEC lost 1.3
percent.
The dollar, which slipped on Monday on the soft data, rose
0.2 percent against a basket of currencies .DXY .
Morgan Stanley (NYSE:MS) said its positioning data showed the market
was its most short dollars since June.
The euro EUR= fell 0.1 percent to $1.1178 while the
Japanese yen JPY= fell 0.2 percent to 113.62.
Speculation of more monetary stimulus and talk that Japanese
Prime Minister Shinzo Abe might delay an unpopular sales tax
hike and call a snap election kept the yen under pressure,
though Abe insisted on Tuesday that neither option was planned.
CRUDE DROP
Brent crude oil LCOc1 dropped 62 cents to $39.65. A
preliminary Reuters survey of analysts showed U.S. oil
stockpiles measured by the American Petroleum Institute were
expected to reach record highs.
Oil prices are up some 50 percent from 12-year lows around
$27 touched in January but the rally has eased in recent days.
"Given the absence of economic numbers supporting increases
in demand we continue to go sideways," said Jonathan Barratt,
Chief Investment Officer at Ayers Alliance in Sydney.
Cheap oil has helped depress global inflation. In the euro
zone, long-term expectations for price rises EUIL5YF5Y=R ,
stand at 1.44 percent, way below the European Central Bank's
inflation target of just under 2 percent.
Yields on German 10-year government bonds DE10YT=TWEB , the
benchmark for borrowing costs in the euro zone, fell 3.3 basis
points to 0.16 percent.
Gold XAU= dipped but held above a one-month low hit on
Monday as the weak U.S. data dented prospects of an immediate
U.S. rate hike. The metal traded at $1,216.70 an ounce.