PHOTO
* Global stocks rise for second day in a row
* Oil making a "fool" of forecasters
* Sterling, Aussie the big gainers in FX
By Jamie McGeever
LONDON, May 17 (Reuters) - World shares rose on Tuesday as technology giant Apple Inc's biggest rise in over two months and oil's march higher to within sight of $50 a barrel boosted investor demand for riskier assets at the expense of safe-haven bonds.
The major European stock markets rose around 1 percent in early trading, following similar gains in Asia after Wall Street also chalked up a 1 percent rise on Monday.
MSCI's index of global shares rose 0.4 percent
.MIWD00000PUS
, putting it on track for its second consecutive rise, something it has not managed in a month.
Investors will be looking to see how long the rally is sustained for and whether Brent crude oil futures, at their highest level in almost six months, can break above $50 for the first time since Nov. 4.
"The strong finish for U.S. markets has seen a similarly positive European open today," said Michael Hewson, chief market analyst at CMC Markets, adding that investors would also look to UK and U.S. inflation data later on Tuesday for direction.
The FTSEuroFirst 300 index of leading European shares was up 1 percent at 1,329 points
.FTEU3
, with Germany's DAX 1.1 percent
.GDAXI
higher, France's CAC 40 up 1 percent
.FCHI
and Britain's FTSE 100
.FTSE
gaining 0.8 percent.
The basic resources sector
.SXPP
led the way, rising almost 3 percent, while financials were around 2 percent higher
.SX7P
.
In Asia earlier, MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS
rose 0.8 percent, extending its recovery from a two-month low set on Friday. Japan's Nikkei
.N225
gained about 1.1 percent.
U.S. stock futures pointed to a rise of around 0.3 percent at the open on Wall Street.
FOOL'S BLACK GOLD
Shares in Apple
AAPL.O
finished 3.7 percent higher on Monday after Warren Buffett's Berkshire Hathaway
BRKa.N
reported taking a stake of about $1 billion in the iPhone maker. Apple shares had lost about one-fifth of their value in the past month on worries about the company's slowing sales growth.
Oil's rise to six-month highs came as supply disruptions prompted long-time bear Goldman Sachs to issue a bullish assessment on near-term prices. Goldman has long warned of global storage hitting capacity and of another oil price crash to as low as $20 per barrel.
urn:newsml:reuters.com:*:nL2N18D077
A combination of Nigerian, Venezuelan and other outages, declining U.S. production, and virtually frozen inflows of Canadian crude after wildfires in Alberta's oil sands region all helped to lift oil prices.
"The oil market continues to make an even larger fool of most forecasters than other financial assets: having caught everyone out by plummeting, it is now catching us out by continuing to rise," Rabobank analysts wrote.
Brent crude futures
LCOc1
rose 0.7 percent to $49.31 per barrel, after having risen 2.4 percent on Monday, touching $49.47, its highest since early November.
U.S. crude's West Texas Intermediate (WTI) futures
CLc1
went up 1.1 percent to $48.24, having risen 3.3 percent on Monday.
Concerns about a slowdown in the Chinese economy could weigh on Asian shares, however, after data published on Saturday showed investment, factory output and retail sales all grew more slowly than expected in April.
urn:newsml:reuters.com:*:nL3N18C04H
In the currency market, the British pound rose 0.8 percent to $1.4515
GBP=D4
helped in part by a report that the "In" campaign held a 15-point lead over rival "Out" ahead of Britain's June 23 referendum on European Union membership.
urn:newsml:reuters.com:*:nL3N18D5C9
The dollar was little changed against the euro at $1.1320
EUR=
, but rose 0.4 percent against the yen to 109.44 yen
JPY=
as investors took a 'risk on' stance on Tuesday.
The Australian dollar rose nearly 1 percent to $0.7345
AUD=D4
, its best day in over a month, after minutes of the Reserve Bank of Australia's May policy meeting were less dovish in tone than many investors had expected.
Bond yields were mostly higher, with U.S. yields up a basis point across the curve
US2YT=RR
US10YT=RR
and benchmark euro zone yields up around 2 basis points
EU2YT=RR
EU10YT=RR
.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Shanghai CSI 300 and global effects interactive
https://t.co/YqIYLIbInP
Chinese A-shares vs developed and emerging stocks
http://link.reuters.com/rac25w
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Catherine Evans) ((jamie.mcgeever@thomsonreuters.com; +44 20 7542 8510)(jamie.mcgeever.thomsonreuters.com@reuters.net))
((To read Reuters Global Investing Blog click on
http://blogs.reuters.com/globalinvesting
; for the Macro Scope Blog click on
http://blogs.reuters.com/macroscope
; for Hedge Fund Blog Hub click on
http://blogs.reuters.com/hedgehub
) ((For the state of play of Asian stock markets please click on:
0#.INDEXA
))
* Oil making a "fool" of forecasters
* Sterling, Aussie the big gainers in FX
By Jamie McGeever
LONDON, May 17 (Reuters) - World shares rose on Tuesday as technology giant Apple Inc's biggest rise in over two months and oil's march higher to within sight of $50 a barrel boosted investor demand for riskier assets at the expense of safe-haven bonds.
The major European stock markets rose around 1 percent in early trading, following similar gains in Asia after Wall Street also chalked up a 1 percent rise on Monday.
MSCI's index of global shares rose 0.4 percent
Investors will be looking to see how long the rally is sustained for and whether Brent crude oil futures, at their highest level in almost six months, can break above $50 for the first time since Nov. 4.
"The strong finish for U.S. markets has seen a similarly positive European open today," said Michael Hewson, chief market analyst at CMC Markets, adding that investors would also look to UK and U.S. inflation data later on Tuesday for direction.
The FTSEuroFirst 300 index of leading European shares was up 1 percent at 1,329 points
The basic resources sector
In Asia earlier, MSCI's broadest index of Asia-Pacific shares outside Japan
U.S. stock futures pointed to a rise of around 0.3 percent at the open on Wall Street.
FOOL'S BLACK GOLD
Shares in Apple
Oil's rise to six-month highs came as supply disruptions prompted long-time bear Goldman Sachs to issue a bullish assessment on near-term prices. Goldman has long warned of global storage hitting capacity and of another oil price crash to as low as $20 per barrel.
A combination of Nigerian, Venezuelan and other outages, declining U.S. production, and virtually frozen inflows of Canadian crude after wildfires in Alberta's oil sands region all helped to lift oil prices.
"The oil market continues to make an even larger fool of most forecasters than other financial assets: having caught everyone out by plummeting, it is now catching us out by continuing to rise," Rabobank analysts wrote.
Brent crude futures
U.S. crude's West Texas Intermediate (WTI) futures
Concerns about a slowdown in the Chinese economy could weigh on Asian shares, however, after data published on Saturday showed investment, factory output and retail sales all grew more slowly than expected in April.
In the currency market, the British pound rose 0.8 percent to $1.4515
The dollar was little changed against the euro at $1.1320
The Australian dollar rose nearly 1 percent to $0.7345
Bond yields were mostly higher, with U.S. yields up a basis point across the curve
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Shanghai CSI 300 and global effects interactive
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Catherine Evans) ((jamie.mcgeever@thomsonreuters.com; +44 20 7542 8510)(jamie.mcgeever.thomsonreuters.com@reuters.net))
((To read Reuters Global Investing Blog click on