European markets rise on Bin Laden's death, manufacturing data

FXstreet.com (Barcelona) - European markets have opened the week on a positive tone rising to their highest level in the last two months, buoyed by Bin Laden's death and better than expected manufacturing activity figures in the EU. In currency markets, Euro and Pound pick up after Asian session's Dollar rally.

Eurostoxx 50 Index rises 0.3%, while the German DAX Index advances 0.8% and the French CAC Index adds 0.35%. In the UK, the FTSE Index remains practically flat two hours after the opening bell.

Appetite for risk has increased on Asian session following news of Bin Laden's killing by a CIA operation in Pakistan, and boosting hopes for the resolution of geopolitical tensions in the Middle East.

In the macroeconomic front European Manufacturing PMI increased to 58.0 in April from 57.5 in March, beating experts expectations of a weaker increase to 57.7.

Dollar giving back gains

EUR//USD retreated from 1.4865 high on Asian session, following news of Bin Laden's killing, to find support at 1.4760, and pick up on early European session, to regain 1.4800 reaching 1.4825 area at the moment of writing

GBP/USD recovery from 1.6620/25 low on Friday was capped at 1.6740 on Asian session, and the pair dropped to 1.6640 after Bin Laden death, to bounce up on early London session, reaching 1.6700.

USD/JPY dipped to fresh one-month lows at at 81.00 on early Asian session, and the pair bounced up stronly following Bin Laden's death, to stall at 81.70 right below Friday's high.

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