Reuters: US Dollar Report: GLOBAL MARKETS-Stocks inch higher; FOMC minutes eyed

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GLOBAL MARKETS-Stocks inch higher; FOMC minutes eyed Apr 3rd 2012, 09:07 Tue Apr 3, 2012 5:07am EDT * Europe shares flat, global index up 0.14 pct * Brent crude dips below $125 a barrel after strong gains * Nikkei fall 0.6 pct as yen hits 3-week high * Copper rises to near two-month high * U.S. FOMC minutes eyed By Blaise Robinson PARIS, April 3 (Reuters) - World stocks rose for the third straight day on Tuesday and copper hit its highest level in nearly two months as investors' appetite for risky assets improved following solid U.S. and Chinese manufacturing data. The MSCI world equity index was up 0.1 percent at 0843 GMT, adding to a 1.5 percent surge in two sessions. But European stocks were slightly down, with Spanish shares falling 0.7 percent on concerns over the country's finances. "The mood is improving in the United States, but in Europe the temptation to book profits on stocks is high after the recent strong gains as doubts remain, particularly over Spain and Italy," Agilis Gestion fund manager Arnaud Scarpaci said. "People are switching to more defensive stocks, such as pharmas, while appetite for oil-related shares is also growing with oil prices on the rise." Doubts over the pace of global economic growth and a conviction that the euro zone's debt crisis is far from solved have given pause to a robust rally for stock markets at the start of this year. Investors were waiting for the minutes from the U.S. Federal Open Market Committee meeting of March 13, due later on Tuesday, seeking clues on a potential new wave of quantitative easing. Recent comments from Federal Reserve policymakers suggest a high threshold for further Fed easing may be set and that they probably want to see a marked deterioration in the recovery before they would support another round of monetary stimulus. Brent slipped below $125 a barrel, reversing a small portion of Monday's gains made on the back of stronger-than-expected U.S. data and the prospect of tighter crude supplies from the North Sea. Japan's Nikkei share average fell 0.6 percent, although it managed to remain above 10,000, as the yen rose to a three-week high against the dollar, triggering a bout of profit taking on shares of blue-chip exporters. The yen was boosted by a raft of stop-loss buying that kicked in after investors reduced massive short positions built in recent weeks, though the broad trend for a weakening Japanese currency remained intact. "The yen has strengthened technically after this move, and while its long-term weakening trend remains intact we may see further correction on the dollar rally over the next few weeks," said Teppei Ino, a currency strategist at Bank of Tokyo-Mitsubishi UFJ in Tokyo. BUNDS DIP AHEAD OF ECB MEETING The Australian dollar came under renewed pressure on Tuesday after the country's central bank left the door wide open for a rate cut in May, causing bond futures to rise. German government bonds dipped on Tuesday, but the losses were seen limited by a weaker euro zone outlook. Investors expect European Central Bank President Mario Draghi to acknowledge the relative weakness of the bloc's economy in comments after Wednesday's interest rate-setting meeting and suggest a wait-and-see attitude. "Bunds are poor value. The global economy is not in such a bad state as people feared," RIA Capital Markets bond strategist Nick Stamenkovic said. Ten-year German government bonds last yielded 1.825 percent, 2.2 basis points higher on the day. Link this Share this Digg this Email Reprints

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