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GLOBAL MARKETS-Global stock markets rise, while yen falls back

Published 2016-05-10, 04:08 a/m
© Reuters.  GLOBAL MARKETS-Global stock markets rise, while yen falls back
JP225
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CSGN
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PNDORA
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ATGI
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FTEU3
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* European shares rise, Ct Suisse climbs after earnings
* Japanese finmin reiterates readiness to weaken yen
* Greek market rises on prospect of debt relief for Athens

By Sudip Kar-Gupta
LONDON, May 10 (Reuters) - World stock markets rose on
Tuesday, helped by some solid corporate earnings in Europe and a
new pledge by Japan that it was prepared to step in to weaken
its yen currency.
The MSCI All-Country World index .MIWD00000PUS climbed 0.4
percent, the pan-European FTSEurofirst 300 .FTEU3 index
advanced 1.2 percent, while the MSCI Emerging Market index
.MSCIEF also edged higher.
European stock markets built on positive momentum from
earlier on in Japan, where the Nikkei .N225 rose 2.2 percent
after Japan's Finance Minister Taro Aso reiterated his resolve
to intervene in the currency market if the yen's gains last long
enough to hurt Japan's fragile economic recovery.
Aso's comments sent the yen down to its lowest level in
almost two weeks against the dollar, and also reinforced the
backdrop of central banks around the world looking for ways to
boost the global economy. FRX/
Lex Van Dam, hedge fund manager at Hampstead Capital, said
that record low interest rates from the European Central Bank
(ECB) meant equities still offered more attractive returns than
cash or bonds.
"Rates are not going anywhere, so buying any dips on the
stock market might still be the best strategy," he said.
European equities were also propped up by some decent
corporate results in the region.
Shares in Credit Suisse (SIX:CSGN) CSGN.VX rose after the Swiss bank
reported a smaller-than-expected first quarter loss, while
jewelry maker Pandora PNDORA.CO surged after posting higher
profits and raising its financial outlook.
Greek shares .ATG also rose after euro zone finance
ministers offered to grant Greece some debt relief, with the
move also causing Greece's 10-year bond yields to fall below 8
percent for the first time in more than six months.
The offer appears to be a compromise between Germany, which
does not believe Greece needs additional debt relief, and the
International Monetary Fund, which insists it is necessary, and
will be fleshed out by deputy finance ministers by May 24.
"At the very least it appears the gap between the IMF and
the Germans appears to be narrowing and that has been very well
received by investors," said Nick Stamenkovic, bond strategist
at RIA Capital Markets.

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