China moves send shares higher but copper, oil slip

Tue Jul 23, 2013 8:06am EDT
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By Richard Hubbard

LONDON (Reuters) - World shares were propelled towards five-year highs on Tuesday by signs China was moving to avoid a hard landing for its slowing economy, but copper and oil prices slipped as worries over global demand lingered.

Stock index futures pointed to Wall Street extending its gains and testing fresh record highs when trading gets underway, though results from tech giant Apple (AAPL.O: Quote) due later in the day could keep a lid on any gains. .N

Share markets worldwide gained after local media in China reported the government was looking to increase investment in railway projects as part of efforts aimed at ensuring annual economic growth does not sink below 7 percent.

Asian shares outside Japan .MIAPJ0000PUS rose by 1.3 percent to their highest since early June on the reports and Britain's mining-heavy FTSE index touched a seven-week high, though a lack of detail made some in the markets cautious.

"Managing to keep (Chinese growth) above 7 percent will certainly be viewed as a positive stance," said IG Markets analyst Alastair McCaig. "But they really have only five months to prove their words are worth their weight."

Deal-making in the telecoms sector fed the gains across Europe during the morning, lifting the broad FTSE Eurofirst 300 index .FTEU3 0.3 percent to near a seven-week high. .EU

The euro zone's blue-chip Euro STOXX 50 index .STOXX50E was up 0.6 percent to bring its gains since late June to 10 percent, mirroring sharp rises on Wall Street where the S&P 500 .SPX hit a record closing high on Monday.

The recent rally has sharpened scrutiny on company statements in the corporate earnings season now underway.   Continued...

An employee of the Tokyo Stock Exchange (TSE) works at the bourse in Tokyo June 13, 2013. REUTERS/Toru Hanai