Global shares, dollar recover after steep selloff

Wed Jun 12, 2013 8:41am EDT
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By Richard Hubbard

LONDON (Reuters) - The dollar, world shares and oil edged higher on Wednesday, clawing back some of the previous day's steep losses as investors sought out bargains while staying on edge over central bank stimulus plans.

Stocks, bonds, commodities and the dollar all suffered a sharp sell-off on Tuesday when the Bank of Japan's decision to leave its policies unchanged spooked investors already worried about prospects of the Federal Reserve cutting its bond buying.

Many saw the selloff as an opportunity to build positions, especially given improvement in the U.S. economy.

"We don't think the fundamentals have changed and we will move portfolios to take advantage of that," David Zahn, a portfolio manager for fund manager's Franklin Templeton, said.

A rise in U.S. stocks index futures signaled Wall Street would join in the global move up when trading resumed. .N

The dollar, which chalked up its biggest one-day fall against the yen in three years in Tuesday's selloff, gained about 0.5 percent to reach 96.50 yen. Against a basket of currencies it was up 0.2 percent .DXY.

Against the euro, the greenback lifted off 3-1/2 month lows to trade around $1.3265.

SHARES BOUNCE   Continued...

A man walks through the lobby of the London Stock Exchange August 5, 2011. REUTERS/Suzanne Plunkett