Global shares rise before US fiscal cliff talks
LONDON/HONG KONG, AP and AFPReuters--World shares and the euro edged higher on Friday as U.S. lawmakers prepared to resume negotiations on avoiding a fiscal crisis, while the yen hit a two-year low on the prospect of drastic monetary easing in Japan.
December 29, 2012, 12:05 am TWN
U.S. President Barack Obama and lawmakers are set to have a last round of talks before a New Year deadline to reach a deal on averting major tax increases and spending cuts which could drag the economy and others around the world into recession.
Obama and Vice President Joe Biden will meet congressional leaders from the Republican and Democrat parties at the White House at 2000 GMT.
The MSCI all world share index was up 0.15 percent shortly after trading opened in Europe.
European shares were mixed in early trading. Britain's FTSE 100 rose 0.1 percent to 5,959.89. Germany's DAX was nearly flat at 7,653.34. France's CAC-40 shed 0.1 percent to 3.670.03.
Members of Congress were divided on the odds of success at the budget talks, but IG strategist Stan Shamu noted some hope in the markets. “There is growing optimism that a deal can be knocked (together) before the deadline,” IG strategist Stan Shamu wrote in a note.
The euro edged up past US$1.325 as trading remained thin as Christmas holidays continued for many investors. It came as France reported its economy had grown 0.1 percent in the third quarter.
European bond markets were largely quiet. German Bund futures rose on concerns that a U.S. budget deal will, after all, remain elusive.
Asian stock markets rose Friday, hours before President Obama and key lawmakers were to meet at the White House to try to hammer out an 11th-hour budget compromise to avert the so-called fiscal cliff. Wall Street also appeared set for a session of gains.