STOCK MARKET WATCH - Wednesday, 1 February 2012

[Ghost Dog]

25. Shares firmer, euro steady ahead of factory data

(Reuters) - Stocks rose and the euro steadied on Wednesday as investors remained on guard ahead of the release of manufacturing surveys from the Europe's biggest economies after China's powerful factories showed a slight expansion.

The Chinese manufacturing sector grew modestly in January, with an official PMI reading inching up to 50.5 from 50.3 in December, beating the 49.5 forecast and lifting Asian stocks and commodity-linked currencies.

Euro zone Purchasing Manager's Indexes are expected to show the region still on track for a modest recession as its debt problems hit consumer and business confidence, although Germany should stand out, staying on track for small expansion.

Across Europe stock markets started firmer with the pan-European FTSEurofirst 300 .FTEU3 index of top shares up 0.3 percent at 1,040.81 points.

"The probability of the euro zone debt problems turning into a global financial crisis has receded considerably and the risk of global growth grinding to a halt is low, but that doesn't change the main scenario for an economic slowdown generally," Takao Hattori, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities in Tokyo said.

/... http://uk.reuters.com/article/2012/02/01/uk-markets-global-idUKTRE80T08A20120201