RTRS: Global equities rise on economy gains, dollar slides
(Reuters) - Investors shifted their focus from Middle East turmoil to concentrate on improved economic data and corporate results on Tuesday, lifting global stocks.
Wall Street looked set to join in and open higher.
Inflation expectations boosted the euro, helping drive the dollar to a 12-week low against a group of other currencies.
The price of oil, the most sensitive indicator of market unease about Egypt, eased, although Brent crude remained a few cents above $100 a barrel.
Egyptians were protesting en masse, demanding an end to the 30-year-rule of President Hosni Mubarak.
Oil dipped, however, on news of China's factory growth cooling to a five-month low, signalling demand may rise more slowly in the world's second-largest oil user.
The Egyptian crisis has prompted bursts of risk aversion on financial markets over the past few days but investors on Tuesday were trading on expectations of better prospects for the world economy.
Manufacturing activity in the euro zone accelerated more than previously thought in January, indicating the sector is regaining momentum across most of the region with the notable exception of Greece.
Investors were earlier encouraged by upbeat U.S. Midwest factory activity and consumer spending figures on Monday.
"There is confidence in the market as companies are reporting good figures," said Heinz-Gerd Sonnenschein, equity markets strategist at Deutsche Postbank in Bonn.
German chipmaker Infineon (IFXGn.DE), for example, raised its full-year outlook, anticipating strong demand from the automotive and industrial sectors.
Credit Suisse, meanwhile, upgraded Greek equities to "benchmark" from "underweight," citing cheap equity valuations and a range of supportive macroeconomic factors. Athens' leading share index .ATG gained 12.7 percent last month after being battered during the debt crisis.
World stocks as measured by MSCI gained half a percent, with Europe's FTSEurofirst 300 .FTEU3 up 0.8 percent.
Japan's Nikkei .N225 earlier closed up 0.36 percent.
Developed market stock indexes are generally in positive territory for the year. By contrast, Citi reported that most core government bonds lost money in January.
