World Economy

European Shares Rise, Asian Mixed

European Shares Rise, Asian MixedEuropean Shares Rise, Asian Mixed

European shares rose on Wednesday, bolstered by hopes for more stimulus from the European Central Bank and upbeat US economic data that calmed anxiety over a deteriorating global outlook.

The Australian dollar hit a four-year low against its US counterpart before US data likely to prove crucial for this week’s recovery of several currencies against the dollar, Reuters reported.

Eurozone government bonds and shares gained after ECB Vice President Vitor Constancio said the bank might decide in the first quarter of 2015 whether to buy sovereign bonds.

The pan-European FTSEurofirst index was up 0.3 percent at 1,392.94. It has been rising daily since Friday, when ECB President Mario Draghi spoke on the likelihood of more stimulus and China cut interest rates.

Germany’s DAX index  rose for the 10th straight day, its longest winning streak since May 2013. “We’re long the DAX because America has outperformed hugely, and even though growth there is strong that is already in the price, whereas in Germany there’s more to come,” said Markus Huber, a senior trader at Peregrine & Black.

US stock index futures SPc1 NDc1 DJc1 were higher before economic data which may indicate whether the market’s record highs are justified.

  Asian Shares Mixed

Asian shares had a mixed session as the upward revision to US economic growth failed to provide much of a boost.

Figures released on Tuesday showed the US economy grew at an annualized rate of 3.9% from July to September, up from the previous estimate of 3.5%.

The rise, which follows a strong second quarter, meant that the US has seen its strongest two consecutive quarters of growth in a decade. But that failed to ignite Asia’s biggest market.

Japan’s benchmark Nikkei index closed down 0.1% at 17,383.58.

But investors in Hong Kong were optimistic and that drove shares higher. The benchmark Hang Seng index closed up 1.1% or 268.07 points to 24,111.98.

In the mainland the Shanghai Composite finished the day up 36.7 points, or 1.4%, at 2,604.34 - the highest close since August 2011.

Traders are still upbeat following China’s surprise interest rate cut last week, which aimed to boost growth in the world’s second largest economy.