European shares pushed higher on Wednesday, bolstered by the prospect of more stimulus from the European Central Bank and as upbeat US economic growth data calmed investor anxiety over a deteriorating global outlook.

The Australian dollar hit a four-year low against its US counterpart ahead of a clutch of further US data likely to prove crucial for this week’s recovery of a handful of currencies against the dollar.

The pan-European FTSEurofirst index of leading blue-chip companies has been rising daily since the ECB President, Mario Draghi, opened the door for more aggressive asset purchases and China cut interest rates on Friday.

The index was up 0.3 per cent at 1,393.37, with investors also encouraged by an upgrade of US third quarter gross domestic product to 3.9 per cent on Tuesday from 3.5 per cent reported last month. Economists polled by Reuters had expected growth would be cut to 3.3 per cent.

“Sentiment is bullish," Markus Huber, a senior trader at Peregrine & Black, said.

“We're long the DAX (German share index) because America has outperformed hugely and even though growth there is strong that is already in the price whereas in Germany there’s more to come.’’

The Australian dollar slumped to a four-year low of US$0.8510, deepening this week’s losses against the greenback.

The Australian currency has been one of the biggest casualties in a rally for the US currency since July and the Reserve Bank of Australia Deputy Governor, Philip Lowe, this week propelled it to as low as $0.8514 on Tuesday by saying it was still overvalued.

“There are those who say the Aussie should bounce from these levels but my feeling is if it breaks below (a key support) against the kiwi that may be significant,’’ said Daragh Maher, a strategist with HSBC in London.

The 10-year US Treasury yields dropped to a one-month low of 2.252 per cent, as strong auction results, month-end buying and an unexpected drop in US consumer confidence offset the encouraging GDP news.

That also helped the US dollar pull further away from a seven-year high against the yen as investors took profits from its rally ahead of the Thanksgiving Day holiday on Thursday.

The dollar was down 0.2 per cent at 117.72 yen, retreating further a seven-year high of 118.98 reached the previous week. The euro was little changed at $1.2477.

Oil prices steadied around $78 a barrel after a comment by Saudi Arabia’s oil minister that the oil market would stabilise eased pressure on the market before an OPEC meeting on Thursday.

Benchmark Brent futures were at $78.15 a barrel at 0900 GMT, off a low of $78 hit earlier in the day after a meeting of Saudi Arabia and three other nations ahead of Thursday’s summit ended with no deal to curb output. Predictions for the OPEC summit range from a large output cut to none at all.

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