Shares rise, dollar falls on central bank expectations
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World shares gained and the dollar fell on Monday as investors counted on easy money from the U.S. and euro zone central banks to offset the risk of further disappointing global economic data.
However, the euro gained ground as some investors had second thoughts about whether the European Central Bank will cut interest rates on Thursday, a prospect that pushed the common currency down around 1.3 percent against the dollar last week.
"Last week it was all go, go go - everyone was factoring in a rate cut," said Sarah Hewin, senior economist at Standard Chartered Bank. "There's a bit of a reconsideration now, and a look at the reasons why the ECB may decide just to make no move."
A Reuters poll of 76 economists last Thursday showed only a narrow majority of 43 expected a 25 basis point cut at the ECB policy meeting, which would take its refinancing rate to a record low of 0.50 percent.
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