Reply #31: GLOBAL MARKETS-Stocks, euro steady; investors still wary [View All]

[Ghost Dog]

LONDON, May 17 (Reuters) - Stocks steadied and the euro bounced off four-year lows on Monday as wary European markets seized on positive company news and bought back into the single currency on a squeeze of short trading positions.

Wall Street looked set to open slightly higher after a selloff of more than 1.5 percent on Friday.

European and global stocks retraced early morning losses sparked by fears that European austerity measures would smother the region's fragile recovery, while a brief widening of Greek government bond yield spreads versus German bunds reversed.

By early afternoon the spread between Greek and German 10-year government bonds was little changed at 546 basis points.

Core euro zone government bond prices fell, with some traders citing central bank debt buying of peripheral debt while others said Bunds had been overbought.

...

The FTSEurofirst 300 index of top European shares was up 1.03 percent after oil major BP reported some progress in containing the oil gushing out of its ruptured well into the Gulf of Mexico.

Banks, which have been amongst the biggest losers in the recent turmoil, were also mostly higher.

/... http://www.finanznachrichten.de/nachrichten-2010-05/16918222-global-markets-stocks-euro-steady-investors-still-wary-020.htm