LONDON: World stock markets were steady Thursday ahead of European interest rate decisions and the start of the US corporate earnings reporting season, while the dollar slid further against other currencies. The euro edged up towards $1.40 for the first time since early February while the dollar dropped below the level that forced the Bank of Japan to intervene in the markets to stem the export-sapping appreciation of the yen. In Europe, the FTSE 100 index of leading British shares was down less than a point at 5,680.85 while the DAX was up a similar amount at 6,271.05. The CAC-40 in France was slightly lower at 3,764.22. A similarly lackluster performance was expected when Wall Street opens later, with Dow futures 3 points higher at 10,909 and the broader Standard and Poor's 500 futures flat at 1,156. Stocks have been buoyed since Tuesday's decision by the Bank of Japan to cut its interest rate to near zero percent and its announcement it is preparing a 5 trillion yen ($60 billion) fund to buy government bonds and other assets to prop up the faltering Japanese economy. Investors have concluded that the Federal Reserve will itself resume asset purchases of some form or other in the next few weeks – the most likely date is thought to be Nov.3 at the conclusion of its next rate-setting meeting. Much could well hinge on Friday's US nonfarm payrolls data, which often set the market tone for a week or two after their release. Most economists think the figures won't be good enough to stop the Fed from announcing fresh stimulus measures. The prospect of more dollars in the system have underpinned stocks around the world, but have weighed hard on the US currency itself. By mid morning London time, the euro was 0.3 percent higher at $1.3970, just shy of its earlier eight-month high of $1.3994. All eyes will be on what, if anything, the European Central Bank's President Jean-Claude Trichet says about the euro's return to favor when he holds his monthly press conference following the bank's expected decision to keep the key interest rate unchanged at 1 percent. The Bank of England is also expected to keep its benchmark interest rate unchanged at the record low of 0.5 percent, when it concludes its monthly meeting later. Although he typically refrains from commenting on the value of the euro, Trichet is expected to address the issue of the currency's rise and its impact on the debt problems and austerity measures facing many eurozone countries, notably Ireland and Greece. “Any comments on the strength of the euro will be scrutinized,” said Mitul Kotecha, head of global foreign exchange strategy at Credit Agricole. Meanwhile, the dollar was down 0.5 percent at 82.46 yen, just above its earlier 15-year low of 82.25 yen. The markets are on the lookout for another intervention by the Bank of Japan now that the dollar has fallen below the 82.87 yen level it intervened last month. Even though, the rate is below the intervention rate, analysts still think that the Japanese authorities can claim a level of success from its earlier action but will need to enter the markets once again to prevent a drop below 80 yen.
