Egypt gives markets hope

LONDON – Stocks edged up on Wednesday as investors grew hopeful that the political standoff in Egypt will be contained and resolved peacefully, while the euro eased back from three-month highs against the dollar after a ratings downgrade of Ireland.

Though Egyptian President Hosni Mubarak’s vow on Tuesday to not stand for president again in September has not stopped the protests, there is a feeling in the markets that a peaceful transition may be in the works.’With geopolitical concerns easing once again as Mubarak promises to leave power after the elections, global equity markets are looking as if the Egyptian crisis never happened and the upward trend has resumed,’ said Cameron Peacock, market analyst at IG Markets.In Europe, Germany’s DAX was up 0,1 per cent at 7 189,17 while the CAC-40 in France was steady at 4 073. The FTSE 100 index of leading British shares outperformed its peers, rising 0,9 per cent to 6 010 following strong results from Imperial Tobacco Group and Eurasian Natural Resources.Wall Street was poised for a subdued opening later – Dow futures were up 20 points at 11 993 while the broader S&P 500 futures rose 2,2 points to 1 304,90.On Tuesday, the Dow Jones industrial average gained 1,1 per cent and the broader S&P 500 rose 1,6 per cent. Both closed at their highest levels since mid-2008 thanks to positive US manufacturing data.Though investors continue to keep one eye on developments in Egypt and the Middle East – where much of the world’s oil reserves are located -they were largely encouraged by a bumper week for economic news ahead of the crucial US payrolls figures today.Manufacturing figures Tuesday, particularly out of the US, were exceptionally strong, reinforcing hopes that the global economic recovery is gaining traction.The dollar has been on the defensive despite the forecast-busting US survey from the Institute for Supply Management as traders’ appetite for risk rises. When investors feel comfortable about taking on more risky trades, stocks and the euro are often beneficiaries at the expense of assets like the dollar and gold.The euro had risen to US$1,3861, its highest level since November 11, in early morning trading. But after Standard & Poor’s downgraded Ireland’s creditworthiness, the euro edged lower. By late morning London time, it was down 0,2 per cent on the day at US$1,3800. – Nampa-AP