STOCK MARKET WATCH -- Thursday, 2 February 2012

[Ghost Dog]

24. European shares firm, debt auctions eyed

(Reuters) - European shares hit a six-week high on Thursday adding to solid gains after global manufacturing data eased fears about the growth outlook, but with Greek debt talks unresolved, gains were limited.

"As long as there's no bad news, no default in any European countries, markets should keep on trickling upwards," said Mark Priest, senior trader at ETX Capital.

Markets will be watching the strength of demand at bond auctions by Spain and France for confirmation that the euro zone debt crisis fears are easing.

"People are now becoming increasingly used to positive results on the auctions at the moment. They've got the potential (to boost the euro), particularly if they had a very healthy bid to cover ratio," Simon Derrick, head of currency research at Bank of New York Mellon said.

The euro was trading at around $1.3150 off its earlier highs of $1.3197. The dollar hovered around a three-month low against the yen of 76. The FTSEurofirst 300 index of top European shares .FTEU3, which closed at a high not seen since early August on Wednesday, was up 0.2 percent at 1,059.29 points.

/... http://uk.reuters.com/article/2012/02/02/uk-markets-global-idUKTRE80T08A20120202