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LONDON (Reuters) – Global equities advanced on Tuesday after a compromise deal to extend expiring U.S. tax cuts, though the euro zone's debt crisis and speculation over a possible interest rate rise in China kept them in check. The euro rose on optimism that Irish lawmakers will pass its toughest ever budget later in the day. The single currency remained vulnerable, however, with European policymakers dithering over how to tackle the region's debt problem.

Copper prices gained, supported by Chinese buying and a firmer euro, while uncertainties over monetary policy in China -- the world's second largest oil consumer -- weighed on crude prices.

U.S. President Barack Obama unveiled a deal late on Monday to renew tax cuts not just for the middle class but for also wealthier Americans, as Republicans wanted.

The announcement was welcomed by the markets, with U.S. stock index futures trading 0.2 to 0.3 percent higher and global stocks measured by MSCI All-Country World Index (.MIWD00000PUS) adding 0.3 percent. "The market is benefiting from the compromise in the U.S. on the extension of the Bush tax cuts and to a lesser extent from the probable voting (through) of the Irish (budget)," said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets.

Europe's FTSEurofirst 300 (.FTEU3) index put on 0.2 percent and shares in euro zone peripheral economies also rose, while borrowing costs in those countries held steady.

The Irish benchmark (.ISEQ) gained 1 percent, as Prime Minister Brian Cowen is expected to get his fiscal plan through parliament and avert the risk of a snap election. Last month, the country accepted an 85 billion euro international bailout package.

The euro was up 0.4 percent at $1.3356.

"The euro is gaining support on optimism that the Irish budget will be passed but I expect any rallies to be fleeting. Structural weaknesses in the euro zone remain in place," said Lee Hardman, currency analyst at BTM-UFJ.

EURO ZONE ON WATCH

The single currency region's policymakers have yet to show the financial markets that they can decisively resolve its debt problem.

After a five-hour meeting, the bloc's finance ministers said late on Monday they would be taking no new steps to tackle the contagion, saying an existing emergency fund was sufficiently big and that a proposal to issue euro zone bonds had not even been broached.

German Chancellor Angela Merkel, speaking in Berlin, rebuffed calls for a bigger financial safety net or joint euro bonds.

Yields on sovereign bonds issued by peripheral euro zone countries were largely steady. Ireland's 10-year bond yields over benchmark German Bunds eased 3 basis points to 563 bps, while those on Portuguese 10-year bonds rose 2 bps to 324 bps.

The dollar was steady at 82.66 yen after slipping to a three-week low against the Japanese currency earlier in the session. The renewed strength in the yen dragged Japan's Nikkei 225 (.N225) down 0.3 percent.

In the commodity market, copper rose 1.9 percent, while oil prices dipped 0.1 percent.

"The euro has jumped a lot in the past few hours, and that has really lifted copper," a trader in Sydney said.

"Also demand in China is very strong. We think they may be a little short and are moving to cover exposure. The two together could see us make a new high a little above the old levels before coming off again."

(Additional reporting by Atul Prakash, Neal Armstrong and William James in London, and Nick Trevethan in Singapore; Editing by John Stonestreet)

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TOKYO – Asian stock markets were mostly higher Wednesday, with a softer yen giving exporters a lift in Tokyo.

Japan's Nikkei 225 stock average rose 0.9 percent to 10,232.19 as the dollar climbed above the 83-yen line. Investors bought exporters including car and electronics makers.

South Korea's Kospi added 0.2 percent to 10,232.19, and New Zealand's benchmark rose 0.5 percent to 3,296.84.

Meanwhile, Australian shares lost ground, with the S&P/ASX 200 slipping 0.2 percent to 4,718.4.

In New York Tuesday, the Dow Jones industrial average fell 3 points, or 0.03 percent, to close at 11,359.16. It had been up as many as 89 points before turning lower in the afternoon as enthusiasm over a deal to extend U.S. tax cuts faded.

The broader Standard & Poor's 500 index rose 0.6, or 0.05 percent, to 1,223.75. The Nasdaq composite index rose 3.6, or 0.1 percent, to 2,598.49.

In currencies, the dollar rose to 83.65 yen from 83.45 yen late Tuesday. The euro rose to $1.3268 from $1.3259.

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TOKYO – Asian stock markets were mostly higher Wednesday, with a softer yen giving exporters a lift in Tokyo.

Japan's Nikkei 225 stock average rose 0.9 percent to 10,232.19 as the dollar climbed above the 83-yen line. Investors bought exporters including car and electronics makers.

South Korea's Kospi added 0.2 percent to 10,232.19, and New Zealand's benchmark rose 0.5 percent to 3,296.84.

Meanwhile, Australian shares lost ground, with the S&P/ASX 200 slipping 0.2 percent to 4,718.4.

In New York Tuesday, the Dow Jones industrial average fell 3 points, or 0.03 percent, to close at 11,359.16. It had been up as many as 89 points before turning lower in the afternoon as enthusiasm over a deal to extend U.S. tax cuts faded.

The broader Standard & Poor's 500 index rose 0.6, or 0.05 percent, to 1,223.75. The Nasdaq composite index rose 3.6, or 0.1 percent, to 2,598.49.

In currencies, the dollar rose to 83.65 yen from 83.45 yen late Tuesday. The euro rose to $1.3268 from $1.3259.

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LONDON (AFP) – The euro rose on Friday and stock markets firmed in response to massive purchases of eurozone debt by the ECB which pushed down borrowing rates for weak eurozone countries facing crisis.

Investors were on edge before the publication of crucial US economic data.

But a key factor in the markets was evidence on the bond market that the European Central Bank has ramped up purchases of debt issued by countries in trouble, mainly Ireland and Portugal.

The euro advanced to 1.3255 dollars in early trading here, from 1.3220 dollars late on Thursday in New York.

Yields on bonds issued by eurozone countries under strain, notably Portugal and Ireland, eased.

London's FTSE 100 stock index gained 0.05 percent, the German DAX 30 added just 0.02 percent and in Paris the CAC 40 climbed 0.53 percent.

The European Central Bank (ECB) had decided on Thursday to extend its exceptional bond-buying and liquidity-boosting operations to fight the debt crisis which has driven Greece and Ireland into rescues and threatens Portugal and Spain.

"It's a risk-on morning during the European session," said Forex.com analyst Kathleen Brooks, suggesting that investors were becoming more willing to buy assets that are deemed to carry higher risk -- like equities and the euro.

"The markets initially stuttered yesterday afternoon after ECB President (Jean-Claude) Trichet failed to firmly commit to provide policy support to the troubled peripheral nations during his monthly press conference."

The European Union and International Monetary Fund have already agreed to bail out Ireland and Greece with billions of euros, but markets suspect that Portugal and Spain could be next in line.

Brooks added: "Trichet clearly stated the ECB was not embarking on a period of quantitative easing.

"However, he did extend lending facilities at the one-week, one-month and three-month timeframes at fixed interest rates -- and said that its bond-buying programme would be 'commensurate' with market conditions."

"He also stated the need for governments within the eurozone to keep their fiscal houses in order, which suggested a reluctance on the part of the ECB to step in and directly prop up the troubled peripheral economies."

Trichet said on Friday: "I think that we have to see that we have a currency that is credible."

He told RTL radio in France: "There is no crisis for the euro as a currency.

"We have problems of financial instability that are the result of budget crises in certain European countries."

At Morgan Stanley bank, analysts commented that the ECB wanted to see "a major step-change in the economic governance of the euro area up to and including a fiscal federation before considering any policy action."

They said that the ECB's decision on Thursday on extending bond-buying had been reached by consensus but was not unanimous.

The analysts commented that investors should not become unduly optimistic. "The financial crisis needs to be resolved by governments ... The ECB can only be a temporary lender of last resort."

Later on Friday, investors will switch attention to the all-important non-farm payrolls data in the United States.

"Equity market sentiment remains positive and today's focus is the US jobs report where the expectation is for a further gain in private sector employment," said VTB Capital economist Neil MacKinnon.

Most Asian stocks mostly extended gains Friday from the previous day as a fresh batch of US economic figures added to the impression that recovery in the world's biggest economy is on track.

Sydney added 0.38 percent, Tokyo rose 0.10 percent and Seoul picked up 0.36 percent, while Hong Kong fell 0.55 percent and Shanghai eased 0.04 percent.

Comments from Beijing that the government would tighten monetary policy in 2011 suggested interest rate hikes are likely as the country battles inflation.

Dealers were given a strong cue by Wall Street, where the Dow rose 0.95 percent, the S&P 500 advanced 1.28 percent and the Nasdaq gained 1.17 percent.

Markets welcomed news that the National Association of Realtors had reported pending home sales jumped 10.4 percent in October, much more than expected, offering a glimmer of hope to the troubled US housing market.

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FTSE 100 rose from 2 2pc at 5,767, led by topic 4pc rises in Lloyds Banking Group and Royal Bank of Scotland, as Germany and France, indices also gathered momentum. The euro is a beginning to the dollar slide to three-quarters of a percent to $1.3228 due to actions of the ECB.

Recovery defied the predictions of a rout after the ECB have resisted pressure to launch a "money-printing" programme to bail weaker members of the euro area.

Jean-Claude Trichet, President of the ECB, which held the rate their weak record of 1pc and ceased to quantitative easing, but sought to reassure the markets concerned by extending the installation of liquidity of emergency of the Bank for the Bank until the end of the month of March. Traders said that the ECB has immediately began his most aggressive buying sovereign bonds since may erase the debt off-balance sheet of banks and to artificially create strong demand returns.

Yields Portuguese bond 10 years has fallen from 6 148pc 0.497, Irish sovereign yields 10 years dropped from 0.447 Spanish 10 years passed to 5 077pc 0.212 8 496pc and bond yields.

Traders said that the scale of the action appears to be an attempt to allay concerns that the authorities are reluctant to take the necessary measures to assist at the periphery of the troubled euro. Some market participants had hoped that the ECB will announce as much as EUR 1 billion (￡ 847bn) of the quantitative easing.

"I say we are constantly alert." We strive constantly to the situation of the markets. The program of the securities market is underway. I repeat, current... I will comment on the comments of participants in the market, "said Mr Trichet."

Decision of the ECB was soon after that Fund currency International Director, Dominique Strauss-Kahn warned that Europe stands on the edge of a cliff and faces "slow" growth at best.

"The crisis in Europe is still strong," said business leaders and ambassadors in Delhi.

The Greece Ireland received bailout, and "at the edge of the cliff", while others are "not far from the edge", he added. The whole region euro "now has to deal with the budgetary consolidation in the medium term", said.

Official figures added to concerns with the eurozone with slowing economic growth in the third quarter of 0 4pc of 1pc, in the second, according to the Agency for statistics Eurostat. For the 27-Member from entire European Union, growth was 0 5pc in the third quarter – a revision to the increase in the first estimate of 0 4pc.

Fears are mounting that the euro area will be drilling an economy two-speed with the strategy defined to meet the needs of the Germany to the detriment of others.

German, Rainer Bruederle, economy Minister said before the meeting of the ECB only additional liquidity does not solve problems of Europe and describes 600bn United States $ (￡ 386bn) its quantitative easing as excessive stimulus package. He said: "Silver continuous printing is not the solution".

Head of the German Bundesbank, Axel Weber has to go away and criticized the liquidity of the ECB emergency support.

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By Jeremy Gaunt, European Investment Correspondent Jeremy Gaunt, European Investment Correspondent – Wed?Dec?1, 4:04?am?ET

LONDON (Reuters) – Signs of robust economic growth in China helped lift world stocks on Wednesday while the euro halted its recent slide with investors looking for the next move by policymakers to tackle the euro zone's debt crisis.

Better-than-expected Chinese factory data in November, with the official Chinese purchasing managers' index (PMI) rising to a seven-month high of 55.2, showed health in one of the world's largest economic engine, lifting sentiment.

European shares rose nearly 1 percent and Japan was half a percent higher.

But serious concerns remained about the pressure on euro zone debt and the methods by which it might be eased.

On European bond markets themselves, demand for German debt fell ahead of a five-year bond sale, although yield spreads with peripherals such as Spain were slightly tighter.

Debt-ridden Portugal will issue 500 million euros in 12-month T-bills and is likely to pay a new record premium since the introduction of the euro in a fresh sign of market pressure to follow Ireland and Greece to seek a bailout.

Standard & Poor's warning on Tuesday that it could cut Portugal's credit ratings if growth prospects weakened further was having little impact.

The agency also said it could act if private creditors become subordinated to public creditors in a possible aid program.

There were also signs that the euro zone debt crisis was raising concerns among global policymakers. G20 deputy finance ministers discussed "the financial situation in Europe" on Monday in a teleconference, a senior G20 source in Asia said.

The source told Reuters the group discussed what could be done on the part of the G20, but declined to elaborate.

The euro bounced back from recent lows to stand above $1.30, up around three quarters of a percent.

Analysts cautioned, however, that pressure could return quickly, especially if peripheral yield spreads began to widen again or if bond auctions were poor.

"You really need some aggressive action from the authorities in Europe to try and calm nerves and that's really the key at this stage," said Greg Gibbs, a strategist at RBS in Sydney.

The extent of the damage to bond holders was underlined by new Citi bond returns data showing euro zone bonds lost 2.69 percent in November, with Ireland tumbling more than 11 percent, Spain more than 7 percent and nearly Portugal 5.8 percent.

STOCKS REBOUND

The Chinese data lifted risk appetite on stocks markets. Although some countries fear Chinese policy tightening if the economic is deemed to be rising too fast, good growth in China is typically a booster for export-oriented companies.

MSCI's all-country world stocks index (.MIWD00000PUS) was up 0.6 percent and its emerging market counterpart (.MSCIEF) gained a solid 1.3 percent.

European stocks also rose sharply with the FTSEurofirst 300 (.FTEU3) gaining 0.9 percent.

As with the euro, however, analysts said the sentiment could easily be flipped by poor news on the euro zone bond front.

"We're getting a technical rebound. A number of indicators showed the indexes as 'oversold', and some investors have started looking for bargains. But we're keeping a close eye on bond yield spreads to see if this stock rebound has legs," said Harry Sebag, head of sales trading at Saxo Banque.

(Additional reporting by Charlotte Cooper and Blaise Robinson, editing by Mike Peacock)

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