* European stocks bounce back
* ECB weighs up more easing
* UK Osborne in focus
By Jamie McGeever
LONDON, Nov 25 (Reuters) - European stocks moved higher and
oil prices reversed course and fell 1 percent on Wednesday as
investors' concerns eased over the potential fallout of Turkey's
shooting down of a Russian fighter jet.
A Reuters report that euro zone central bank officials are
considering whether to stagger charges on banks hoarding cash or
to buy more debt ahead of the next European Central Bank meeting
pushed the euro lower. ID:nL8N13I42U
At 0930 GMT the FTSEuroFirst 300 index of leading shares was
up 0.8 percent at 1,493 points .FTEU3 , Germany's DAX was up
0.7 percent at 11,015 points and Britain's FTSE 100 .FTSE was
up 0.8 percent at 6,329 points.
"Equity markets are moving higher as the dust settles from
the political fallout between Russia and Turkey," said David
Madden, market analyst at IG in London.
"Traders are viewing no reaction from Russia as good news,
but many dealers are still keeping an eye on the Kremlin," he
said.
Nevertheless, Russia said on Wednesday it will send an
advanced air defence system to reinforce its air base in Syria
and consider cancelling a raft of joint business projects with
Ankara after one of its warplanes was downed.
MSCI's index of Asia-Pacific stocks outside of Japan
.MIAPJ0000PUS inched down 0.1 percent, while MSCI's global
index .MIWD00000PUS had slipped into negative territory.
U.S. stock futures pointed to a rise of around 0.2 percent
at the open on Wall Street. ESc1
UK SPENDING PURGE
The news from Turkey briefly sparked oil supply fears and
sent crude prices surging overnight to two-week highs. But the
market slumped again at the open in Europe. U.S. crude CLc1
and Brent crude LCOc1 futures fell 1 percent to $42.47 and
$45.67 a barrel, respectively.
Prices of metals such as zinc and copper resumed their
recent downtrend as the dollar rallied. This makes
dollar-denominated metals more expensive for buyers. MET/L
Industrial metals are seen remaining under pressure in the
long run with an expected Federal Reserve interest rate hike in
December likely to underpin the dollar.
In currencies, the U.S. dollar roared back after the Reuters
report on the ECB weighing up further policy easing. The euro
slid nearly half a cent to trade down on the day at $1.0629
EUR= . Against the yen, the dollar bounced back from a one-week
low to trade up at 122.55 yen JPY= .
The dollar index against a basket of major currencies .DXY
moved back up to 99.78, approaching the 8-month peak of 100.000
set on Monday.
The dollar's upside, however, was kept in check by U.S. bond
yields. The benchmark 10-year U.S. note yield US10YT=RR stood
at 2.23 percent after touching a 3-week low of 2.206 percent
overnight.
Benchmark euro zone bond yields were also down around 1-2
basis points EU10YT=RR , kept under pressure by the prospect of
further ECB easing.
In Britain the focus was on finance minister George
Osborne's latest push to lower the country's budget deficit
through a series of massive spending cuts. ID:nL8N13I3NN
This follows comments earlier this week from top Bank of
England officials that added weight to the view that interest
rates will be kept lower for longer.
"The fiscal squeeze is one reason the financial markets
expect such a time lag between a (U.S.) Fed rate increase and an
increase from the BOE," said Derek Halpenny, senior currency
strategist at BTMU in London.
"If Osborne sticks to his guns the pound may well remain
under downward pressure over the near-term."
Sterling was down slightly against the dollar at $1.5080
GBP= .
(Editing by Hugh Lawson; To read Reuters Global Investing Blog
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