(MENAFN- AFP) Europe's main stock markets rebounded on Tuesday as traders looked ahead to a meeting of the Federal Reserve when the central bank could further reduce US stimulus.Ahead of the meeting, dealers pored over mixed economic data from across Europe, while keeping a close watch on strains in emerging markets. The euro fell against the dollar in foreign exchange deals.On stock markets, London's benchmark FTSE 100 index rose 0.26 percent to 6,567.75 points around midday in the capital, as investors digested data showing Britain's economy grew last year at its fastest pace since before the financial crisis.Frankfurt's DAX 30 climbed 0.43 percent to 9,389.36 points and the CAC 40 in Paris gained 0.56 percent to stand at 4,167.74 compared with Monday's closing values.Madrid's IBEX 35 rallied 1.20 percent to 9,875.70 points, as Spain's government upgraded the economic growth outlook for 2014."All major European benchmarks have made gains ... as buyers step in to find value after three sessions of pretty heavy losses," said Toby Morris, a senior trader at CMC Markets."Emerging markets continue to look like the emerging theme for this quarter, with today's bounce coinciding with the strengthening of developing nation currencies overnight, with the (Indian) rupee, (South African) rand, (South Korean) won and (Turkish) lira all reversing recent routs."In India the central bank surprised with a quarter-point rate rise to 8.0 percent, and in Turkey the central bank signalled that it would raise rates at a late night crisis meeting.Stock markets had slid on Monday, extending a recent heavy losing streak, as expectations of further stimulus withdrawal by the Federal Reserve added to emerging market strains, according to analysts.Asian stock markets closed mixed on Tuesday after large sell-offs in the previous session.Markets steady before Fed decisionThere is growing concern that with the Fed on a course of winding down its stimulus programme, the cash that has provided strong investment support for emerging economies -- from Argentina and South Africa to Indonesia and India -- could dry up, leading to a flight of capital.Adding to that is a string of weak Chinese data, including last week's manufacturing figures, that have raised questions about the world's number two economy, which is a key driver of growth.Eyes are now on the Fed's latest two-day meeting, which kicks off Tuesday. Despite the latest turmoil, there is speculation it will cut a further $10 billion from its monthly asset purchases, to $65 billion, following a similar announcement last month."While between now and tomorrow evening when the Fed releases their decision where interest rates and tapering are concerned, markets are likely to become a bit less volatile and more stable," said Markus Huber, analyst at brokers Peregrine & Black.Amid calmer trading, haven investment gold fell in Tuesday trading to $1,253.60 an ounce on the London Bullion Market from $1,260.50 on Monday.In foreign exchange, the euro dropped to $1.3635 from $1.3670 late on Monday in New York.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.