Morning MoneyBeat Europe: Bulls Tipped to Pause, Greece in Focus

        By David Cottle
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        Good Morning Europe
        European stocks are called lower from the open, expected to take some time out from recent gains.
        Greece remains front and center among market concerns. Despite a more conciliatory tone from German Chancellor Angela Merkel and her Greek counterpart Alex Tspiras talks are ongoing and scope for volatility remains.
        The lead from Asia is less than encouraging too. HSCB's version of China's Purchasing Managers Index hit an eleven-month low in March, leaving investors to wonder what more Beijing might do to stimulate growth.
        We'll get a look at eurozone PMI numbers through the morning. The money will be keen to see whether 2015's narrative of modest improvement in eurozone numbers can be sustained.
        The dollar is a little weaker, too, as investors wonder whether the Federal Reserve will really be coonfident enough to raise interest rates in the months ahead.
        Market Snapshot: U.S. markets (Monday close) DJIA down 0.1%, Nasdaq down 0.3%, S&P 500 down 0.2%. Nikkei (Tuesday close) down 0.2%. Brent crude down 38 cents at $55.4. Gold down $1.60 at $1186.20. EUR/USD at $1.0937, USD/JPY at Yen119.63. 10 year Treasury yield 1.92%, Bund 0.19%, Gilt 1.53%.
        Watch For:'A busier data sked comprises 'flash' Purchasing Managers Index numbers from around the eurozone, U.S. and U.K. inflation figures, and the U.S. manufacturing PMI.
        What You May Have Missed on MoneyBeat
        Europe's Stock Bulls Show No Sign of Slowing : Equity investors continue to fall over themselves to ride the eurozone bull market in stocks. More than half of 908 investors surveyed by Barclays this month reckon euro area equities will outperform all other regions over the next three months.
        Deutsche Bank's Strategy Review Offers Three Scenarios : Managers at Deutsche Bank AG, now in the final stages of a strategy review, presented three potential scenarios to the supervisory board on Friday in a meeting that lasted around 14 hours.
        Fed Gives Markets a Boost, but Concerns Persist: U.S. stocks surged last week after the Federal Reserve made clear it won't raise interest rates until the economy shows it can handle it.
        Central Banks Still Stoking the 'Insanity Trade': The world's central bankers continue trying to apply the same inflationary policies, expecting to get a result that simply isn't forthcoming but is producing an imbalance in the capital markets that one sharp observer has dubbed the "insanity trade."
        Why Currency Weakness Could Pave the Road To Growth: Is it a coincidence that the U.S. economy's post-crisis recovery came hand in hand with a weak dollar? Could the U.K.'s rebound have something to do with sterling's 2007-08 crash? And is there any connection between the fact that both the British and American economies seem to be running out of steam just as their currencies strengthen? Or that the eurozone is simultaneously recovering?
        Goldman Sees Potential in Starbucks Lunch: Goldman Sachs Group Inc. analyst Karen Holthouse says that even with the recent run up in Starbucks Corp. shares, the coffee chain's stock isn't going to be running out of caffeine any time soon.
        World Week Ahead: Searching for the Right Reading of Last Week's FOMC: Last week's policy statement from the Federal Reserve may have been a game-changer ... or maybe not. On the one hand, the Fed is clearly wary of encouraging markets to project an expedited rush into the first U.S. rate hike in more than eight years. On the other hand, it's also clear that the Fed has created a more flexible "data-dependent" situation for itself, where it has more leeway to quickly tighten monetary policy if the economic numbers warrant it.
        From The Wall Street Journal
        Israel Spied on Iran Talks : Ally's snooping upset White House because information was used to lobby Congress to try to sink a deal.
        ECB to Continue Buying Debt Until Inflation Stabilizes : The European Central Bank will purchase large amounts of public and private debt for at least 18 months and until it is convinced that inflation will stabilize near annual rates of 2%, Mario Draghi said.
        Tsipras, Merkel Seek To Defuse Tensions : German Chancellor Angela Merkel and Greek Prime Minister Alexis Tsipras sought to defuse political tensions between Berlin and Athens, pledging to work together to help resolve Greece's financing crisis.
        ECB Stimulus Pushes Investors to Riskier Bonds : The European Central Bank's monetary stimulus has crushed yields on bonds, spurring investors in the region to buy longer-term debt that offers higher rewards but also more risk if interest rates increase.
        U.S. Regulators Fault 3 Foreign Banks Over 'Living Wills' : The Federal Reserve and Federal Deposit Insurance Corp. found shortcomings in the bankruptcy plans of the U.S. units of BNP Paribas, HSBC Holdings and Royal Bank of Scotland Group.
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        (END) Dow Jones Newswires

        March 24, 2015 02:48 ET (06:48 GMT)

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