* Markets wary after last week's volatility
* Nikkei down 3 pct but above 50-day moving average
* Euro shares inch higher, UK, U.S. markets closed for
* Oil dips back towards $102 a barrel
By Marc Jones
LONDON, May 27 European stocks, bonds and the
dollar traded in a calmer fashion on Monday after last week's
turbulence, though another three percent dive in Japan's Nikkei
kept investors on edge.
Last week's shakeout of equity, bond and currency markets
was triggered by concerns the U.S. Federal Reserve could wind in
its support sooner that had been expected, weak China data and
doubts over how low Japan will allow the yen to go.
With UK and U.S. markets both closed for public holidays,
European equity and bond markets saw a quieter than usual start
to the week.
The FTSEurofirst 300 index of top European shares
started up 0.3 percent as last week's falls tempted buyers,
while demand for safe-haven 10-year German government bond
The dollar was also steadier, though it dipped to
101.00 against the yen as the latest steep fall in
Japanese equities saw investors continue to unwind their dollar
hedges and head for bonds. The euro was little changed at
"Markets are currently experiencing difficulty fully and
precisely understanding both the pace of global growth and the
implications of central banks' activism," Credit Agricole said
in a note.
"Expectations cannot remain stable for long and so investors
should be prepared for periods of higher volatility in
particular asset classes," they added.
In commodity markets, Brent crude slipped towards
$102 per barrel, extending last week's 2 percent drop, as a weak
economic outlook in a well-supplied market pressured prices. The
broader market nerves also helped gold firm as it looked
to build on last week's best run in a month.