China data boosts world shares, nerves hold over U.S. bond-buying taper

Mon Dec 9, 2013 7:06am EST
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By Marc Jones

LONDON (Reuters) - Weaker stocks in parts of Europe were not enough to halt world shares on Monday, as upbeat Chinese trade data added to cautious optimism that the world's economy and markets can cope with a gradual withdrawal of U.S. stimulus.

The moves helped both the dollar and the euro extend their gains on the yen, with the euro zone's currency hitting a new five-year high in what should be a boost to Japanese exports, profits and stocks.

In Tokyo, the Nikkei .N225 climbed 2.3 percent and was fast approaching last week's peak at 15,794, leading a broad rise in Asian markets .MIAPJ0000PUS.

The upbeat sentiment had faded by the time it reached Europe, however.

Paris's CAC 40 .FCHI and then London's FTSE .FTSE turned lower to leave only Frankfurt's Dax .GDAXI holding in positive territory as robust trade data offset a surprise fall in factory output.

Wall Street, meanwhile, was expected to see a flat start to the week. Though both the S&P 500 .SPX and Dow Jones Industrial .DJI bounced over 1 percent on Friday, they suffered their first weekly fall in nine. .N

While Friday's solid U.S. jobs report may have brought forward the day when the Federal Reserve starts tapering its asset buying, the figures also suggested the economy was recovering well enough to withstand the move.

A total of 203,000 jobs were added in November, while the unemployment rate dropped three-tenths of a percentage point to a five-year low of 7 percent. <TOP/CEN>   Continued...

Electronic information boards display market information at the London Stock Exchange in the City of London January 2, 2013. REUTERS/Paul Hackett