(MENAFN - Saudi Press Agency) Global shares advanced and the euro eased o n T uesday as expectations rose that major central banks will do more to bolster the world economy after June world manufacturing data released on Mon day highlighted the drag on growth from the euro zone debt crisis.
Wall Street traded higher, following equity market gains in Europe and Asia. The euro slid below 1.26 on growing doubts about European plans to support indebted countries and the likelihood the European Central Bank will cut interest rates on Thursday.
The prospect of further central bank monetary easing lifted prices of gold and other commodities, including copper and oil. Crude jumped above 100 a barrel for the first time in three weeks as tension over Iran increased concerns about threats to supply.
'If the ECB offers loud support this Thursday with a rate cut and a signal of more to follow in the face of lower growth and inflation, there may be enough fuel for a summer rally in stock markets,' said Bill O'Neill, EMEA chief investment officer for Merrill Lynch Wealth Management.
The stimulus hopes drove the FTSE Eurofirst 300 index of top European companies up 0.6 percent to 1041.83, adding to a 4.2 percent jump since Friday.
MSCI's all-country world equity index was up 0.6 percent at 315.31, and its emerging markets index was up 1.6 percent.
Wall Street also rose. The Dow Jones industrial average was up 30.95 points, or 0.24 percent, at 12,902.34. The Standard & Poor's 500 Index was up 3.90 points, or 0.29 percent, at 1,369.41. The Nasdaq Composite Index was up 9.29 points, or 0.31 percent, at 2,960.52.
The ECB is widely expected to bolster the euro zone economy by cutting its main refinancing rate by 25 basis points to 0.75 percent, with some analysts saying it might have to go further and take more 'non-standard' measures - such as reactivating its own bond-buying program or offering banks fresh liquidity.
U.S. Treasury debt prices eased as investors booked profits from Monday's gains that came on a surprisingly weak June report on U.S. manufacturing activity.
A similar measure of factory activity in the euro area also held steady at its lowest level since June 2009, while joblessness across the region rose to a record high in May.
The benchmark 10-year U.S. Treasury note was down 7/32 in price to yield 1.6089 percent.
Trade volume was thin with the Treasuries market scheduled to close early at 2 p.m. (1800 GMT) and equity markets slated to close at 1 p.m. ahead of Wednesday's U.S. Independence Day holiday, when all U.S. markets will be closed.
Many market players believe a weak U.S. jobs report on F riday could push the U.S. Federal Reserve into a third bout of quantitative easing - the policy of creating money to fund asset purchases that has lifted riskier assets such as shares and commodities in the past.
The dollar was up against a basket of major trading-partner currencies, with the U.S. dollar index up 0.03 percent at 81.903. The euro was down 0.10 percent at 1.2580.
Crude oil rose.
Brent crude was up 3.66 a barrel to 101.00 a barrel. U.S. crude rose 3.97 to 87.72 a barrel.
Spot gold prices rose 23.56 to 1,619.30 an ounce.
