LONDON, Nov 4 - Euro zone government bond futures opened higher on Tuesday, recouping some of their losses of the previous session, as the euro held above $1.1450 in early European trading. On Monday, the euro fell below $1.15 to levels last seen more than a month ago, after the U.S. Institute for Supply Management reported a strogner-than-expected purchasing management index reading for October and its highest level since January 2000. "We are stable here after the euro found a level and equities will likely be the main infleunce on markets today in the absence of much data," said a trader in Helsinki. At 0726 GMT, the December Bund future was up eight ticks on the day at 112.26.
French October consumer confidence data is due at 0745 GMT. A poll of economists forecast confidence at minus 26.0. That would be a mild improvement on on September's minus 27.0 - which was at the same low level as in July, the previous time a survey was conducted. U.S. earnings will ensure that equities take centre-stage on Tuesday. Media group Clear Channel Communications Inc and consumer products giant The Gillette Co. both release third quarter results. Later in the session - at 2330 GMT - the Reserve Bank of Australia announces its interest rate decision. The market mostly expects rates to be left unchanged at 4.75 percent for a 17th consecutive month, but almost a half of economists polled by expect a hike before the end of the year.
On Thursday, focus will turn to the Bank of England, where the market expects a rate hike of 25 basis points to 3.75 percent, as well as a meeting of the European Central Bank, where euro zone rates are likely to remain unchanged at an historic low of 2.0 percent.//