Positive economic data clears eurozone gloom

Signs of growth in the US and German economies encouraged upward moves for European shares and the single currency as traders mull over the prospect of more debt auctions later in the week,.

The FTSEurofirst 300 index opened up 0.2 per cent at 1015.88, while the MSCI world equity index increased 0.1 per cent despite a choppy session in the Asian market, Reuters reports.

Data today showed German exports jumping 2.5 per cent, indicating the eurozone's largest economy is still in a relatively powerful position.

However, trading around the euro continued to be uncertain as investors await debt auctions and further economic news.

Geoffry Yu, currency strategist at UBS, told the news provider markets were remaining cautious in the build-up to the week's events.

"These are testing times for the currency and the scale of the recent decline seems to have caught some people by surprise," he added.

Baring Asset Management warned recently that the outlook for trading in 2012 remains extremely uncertain.

Posted by Greg Secker