European stocks rebound before Fed meeting

LONDON: Europe’s main stock markets rebounded Tuesday as traders looked ahead to a meeting of the Federal Reserve when the central bank could further reduce US stimulus.
Ahead of the meeting, dealers pored over mixed economic data and company news from Europe and the United States.
The European single currency meanwhile dipped against the dollar in foreign exchange activity.
On stock markets, London’s benchmark FTSE 100 index rose 0.38 per cent to 6,576.19 points in early afternoon deals in the capital, as investors digested data showing Britain’s economy grew last year at its fastest pace since before the financial crisis.
Wall Street opened mostly higher Tuesday, withstanding a poor durable goods report and a disappointing outlook from Apple that pushed the Nasdaq into the red.
Five minutes into trading, the Dow Jones Industrial Average gained 0.39 per cent to 15,899.72 points.
New York stocks were cheered by strong earnings reports from Pfizer, Ford Motor and others, even as durable goods orders plunged in December by 4.3 per cent. Analysts had projected a 2.1 per cent increase.
In India the central bank surprised with a quarter-point rate rise to 8.0 per cent, and in Turkey the central bank signalled that it would raise rates at a late night crisis meeting.
Asian stock markets closed mixed on Tuesday after large sell-offs in the previous session.
There is growing concern that with the Fed on a course of winding down its stimulus programme, the cash that has provided strong investment support for emerging economies—from Argentina and South Africa to Indonesia and India—could dry up, leading to a flight of capital.
In foreign exchange, the euro eased to $1.3669 from $1.3670 late  Monday in New York.