* World stocks slip, emerging rise
* European shares fall
* Portugal debt in focus
* Euro stronger
By Jeremy Gaunt, European Investment Correspondent
LONDON, March 29 (Reuters) - World stocks slipped on
Tuesday, despite emerging market gains, while the euro recovered
on expectations of higher interest rates.
Portugal's debt remained under pressure, with yields on its
10-year bonds near record levels above 8 percent, complicating
the country's attempts to avoid a European Union bailout.
World stocks as measured by MSCI <.MIWD00000PUS> were
essentially flat to slightly lower, but the emerging market
component <.MSCIEF> gained more than a quarter of a percent.
Price drops on Monday enticed bargain-minded investors ahead
of the end of the first quarter on Thursday.
"Some investors concluded now it's an opportunity to pick up
some shares," said Shane Oliver, head of investment strategy at
AMP Capital Investors in Sydney. "The broad trend is up and dips
are being bought."
Europe was lower, however, with the FTSEurofirst 300
<> down 0.4 percent. Volume has begun to fall on European
bourses in line with 2011 lows on Wall Street.
Some of this may reflect continuing uncertainty about how
the Japan disaster, turmoil in the Arab world and global
monetary policy will play out. But it could equally be a case of
locking in Q1 profits.
Overall, investors are interpreting what they have seen in
recent weeks as reasonably positive," said Keith Bowman, equity
analyst at Hargreaves Lansdown.
Investors have generally focused on the improving world
economy, but the crises and worries about inflation may be
taking some toll.
German consumer sentiment fell for the first time in 10
months going into April as concern about global issues and
inflation hit households.
The forward-looking GfK consumer sentiment indicator, based
on a survey of 2,000 Germans, predicted a fall to 5.9 in April
from 6.0 in March -- but this was still slightly above the 5.8
expected by 27 economists polled by Reuters.
EURO
The euro rose against the dollar, buoyed after comments by
European Central Bank President Jean-Claude Trichet reinforced
expectations for a rate rise next month.
The single currency had dipped on Monday after hawkish U.S.
policymaker comments lifted the dollar, but it failed to break
below $1.40 before it moved back up as Trichet said inflation
was "durably" above the ECB's target. []
Investors continued to focus on the prospect of higher rates
and continued to shrug off the euro zone debt crisis, with
concerns rising about Portugal's ability to finance itself as
the country prepared for a snap election. []
The euro <EUR=> was up 0.4 percent at $1.4135.
German government bonds opened slightly higher but
Portuguese debt remained under pressure.
(Additional reporting by Atul Prakash, Jessica Mortimer and
Richard Leong; Editing by Hugh Lawson)
