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15-08-2002, Thu 10:50 AM
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EUROPEAN OUTLOOK: Shares Seen Rallying, Govt Bonds Lower
Euro-USD 0.9768 loss 0.0036 dn 0.4%
Stlg-USD 1.5322 loss 0.0073 dn 0.4%
USD-Franc 1.4968 gain 0.0045 up 0.4%
ZURICH (Dow Jones)--European shares should open higher with government bond prices lower and the euro a shade weaker.
STOCKS: European shares will open higher with corporate certification relief on Wall Street spilling over into Europe, whose markets suffered Wednesday from a raft of disappointing corporate earnings reports.
But battered sectors, such as media and banks, should at least make up some of their losses as investors ponder the view that most major U.S. corporations attested to the veracity of their accounts.
Media stocks took a big tumble Wednesday, hurt by France's Vivendi Universal.
Financial stocks also felt the heat Wednesday, with Europe's largest insurance group, Allianz, posting a higher-than-expected second-quarter loss.
Sector sentiment was further damaged by Switzerland's second-largest bank, Credit Suisse Group, reporting a deeper-than-expected second-quarter loss.
BONDS: Euro-zone government bonds are expected to surrender some of Wednesday's gains as stocks advance.
Traders said U.S. data will help share sentiment this session. Industrial production for July and the August Philadelphia Fed survey will be on offer.
FOREX: The euro starts slightly weaker against the dollar after investors sold some Treasurys and shifted money into stocks.
In the absence of any new direction-setting economic data, "the foreign exchange markets are willing to follow what ever new information they get," said Robert Sinche, head of global currency strategy at Citibank in New York. "Right now that new information is the equity markets, but there's nothing out there that tells us there's sustainable dollar strength."
According to one major European bank, the slide in the dollar earlier Wednesday prompted the Bank of Japan to telephone foreign exchange desks to check currency rates.
Backing this up, Japan's top currency diplomat Haruhiko Kuroda was quoted in a report on a Japanese news service, Jiji Press, calling the recent rapid yen rise inappropriate and saying Japan's Ministry of Finance plans to keep a close eye on the foreign exchange market.
EUROPEAN OUTLOOK: Shares Seen Rallying, Govt Bonds Lower
Euro-USD 0.9768 loss 0.0036 dn 0.4%
Stlg-USD 1.5322 loss 0.0073 dn 0.4%
USD-Franc 1.4968 gain 0.0045 up 0.4%
ZURICH (Dow Jones)--European shares should open higher with government bond prices lower and the euro a shade weaker.
STOCKS: European shares will open higher with corporate certification relief on Wall Street spilling over into Europe, whose markets suffered Wednesday from a raft of disappointing corporate earnings reports.
But battered sectors, such as media and banks, should at least make up some of their losses as investors ponder the view that most major U.S. corporations attested to the veracity of their accounts.
Media stocks took a big tumble Wednesday, hurt by France's Vivendi Universal.
Financial stocks also felt the heat Wednesday, with Europe's largest insurance group, Allianz, posting a higher-than-expected second-quarter loss.
Sector sentiment was further damaged by Switzerland's second-largest bank, Credit Suisse Group, reporting a deeper-than-expected second-quarter loss.
BONDS: Euro-zone government bonds are expected to surrender some of Wednesday's gains as stocks advance.
Traders said U.S. data will help share sentiment this session. Industrial production for July and the August Philadelphia Fed survey will be on offer.
FOREX: The euro starts slightly weaker against the dollar after investors sold some Treasurys and shifted money into stocks.
In the absence of any new direction-setting economic data, "the foreign exchange markets are willing to follow what ever new information they get," said Robert Sinche, head of global currency strategy at Citibank in New York. "Right now that new information is the equity markets, but there's nothing out there that tells us there's sustainable dollar strength."
According to one major European bank, the slide in the dollar earlier Wednesday prompted the Bank of Japan to telephone foreign exchange desks to check currency rates.
Backing this up, Japan's top currency diplomat Haruhiko Kuroda was quoted in a report on a Japanese news service, Jiji Press, calling the recent rapid yen rise inappropriate and saying Japan's Ministry of Finance plans to keep a close eye on the foreign exchange market.