Europe Markets Rebound
b>European markets bounced back as worry over consequences of the fall in value of the U.S. dollar took a backseat to strong data on housing in the U.S. Investors have been nervous that a strengthening euro could hurt corporate profits and stall an already tepid economic recovery.
In London, the Financial Times-Stock Exchange 100 index finished higher by 12.60 points, or 0.32%, to 3,992.40, amid speculation the Bank of England will lower rates in months ahead to boost economy. In Germany, the DAX Index added 45.32 points, or 1.60%, to 2,873.60, as IFO officials see deflation becoming more likely with the euro rising against the dollar. In France, the CAC 40 finished up 10.77 points, or 0.37%, to 2,896.29.
In Asia, markets ended lower. Japan's Nikkei index fell 107.08 points, or 1.3%, to 8,120.24, lacking fresh buying news. Trade turnover was very low, partly because of the absence of foreign players following the U.S. holiday on Monday. In Hong Kong, the Hang Seng index stumbled 71.9 points, or 0.76%, to 9,420.81.
Canada's benchmark S&P/TSX rose 55.39 points, or 0.82%, to 6,840.24.