* Traders cite relief referendum peaceful, no surprises
* Euro under pressure after euro zone inflation revised down
* World equity index up 0.1 pct after Friday's month low
By Natsuko Waki
LONDON, March 17 World stocks rose from a
one-month low and the yen slipped on Monday as risky assets
bounced, relieved that Sunday's referendum in Crimea passed
without major violence but waiting to see whether Western powers
will impose sanctions on Russia.
The euro came under pressure after data showed euro zone
consumer inflation dropped back in February to the level that
triggered a surprise interest rate cut in November, underlining
deflation risks in the bloc.
U.S. Treasury yields ticked higher from a 1-1/2 week low set
last week. Friday's data showing a record drop in foreign
governments' holdings of Treasuries underscored the appetite of
emerging countries like Russia for cashing in their holdings to
defend their currencies.
Investors said much of Ukraine-related selling happened in
the run up to Sunday's vote, where residents voted in favour of
joining Russia. Western powers said the vote was illegal and
would impose sanctions, but have announced no details.
"The referendum basically turned out as expected no surprise
there," Markus Huber, senior trader at Peregrine & Black, said.
"Positive was also that the referendum in general went very
orderly ... although much seems to depend on the sanctions the
West will impose on Russia."
The MSCI world equity index, which tracks
shares in 45 countries, rose 0.1 percent on the day, having hit
a one-month low on Friday.
European stocks and the broader Euro STOXX 600
both rose around 0.6 percent. Emerging stocks
added a third percent.
German 10-year Bund yields, the benchmark for
euro zone borrowing costs, ticked higher to 1.556 percent,
having hit eight-month lows of 1.506 percent on Friday.
U.S. Treasury yields stood at 2.6795 percent,
having fallen to 2.6450 percent on Friday.
The Fed said its holdings of U.S. securities kept for
overseas central banks fell by $106.142 billion in the week
ended March 12, to stand at $3.206 trillion, bringing the total
on deposit with the Fed to the lowest level since December 2012.
U.S. crude oil fell 0.2 percent to $98.68 a barrel.
The dollar rose 0.1 percent against a basket of six major
currencies while the yen fell 0.4 percent to 101.79 per
The euro lost 0.2 percent to $1.3887. The euro zone's
year-on-year inflation rate was revised lower to 0.7 percent in
February from an initial estimate of 0.8 percent, compared with
0.8 percent in January.
"Today's CPI figures are a clear reminder that low inflation
may have become the new normal for the euro zone - which
certainly won't make it easy for some countries to reduce their
debt overhangs," said Martin van Vliet, senior economist at ING.
China's yuan eased against the dollar after the
central bank in Beijing doubled the currency's daily trading
band as part of its commitment to liberalise the market.
Yet the currency moved in a relatively narrow range,
reflecting market views that the People's Bank of China will
seek to limit currency swings at a time when markets fret over
China's cooling growth and the quality of corporate debt.