* China inflation data eases immediate rate concerns
* World stocks near 30-month highs
* Euro zone periphery concerns hold back euro
By Jeremy Gaunt, European Investment Correspondent
LONDON, Feb 15 (Reuters) - Chinese inflation data helped
ease investor concerns on Tuesday that the world's No 2 economy
will have to tighten monetary policy more aggressively, but
other data releases kept markets in a tight range.
The dollar was slightly weaker against a basket of major
currencies <.DXY>, while the euro hovered near three-week lows
as concern about euro zone debt rose up again.
World stocks as measured by MSCI <.MIWD00000PUS> were up 0.2
percent, not far from last week's 30-month highs. Japan's Nikkei
<> logged a 10-month closing high and Europe's FTSEurofirst
300 <.FTEU3) was up a quarter of a percent.
A raft of data -- including euro zone fourth-quarter GDP,
German business sentiment and UK inflation -- lay ahead during
the session.
China's inflation was lower than expected at 4.9 percent in
the year to January.
Although price pressures continued to build and will force
the central bank to stick to its course of gradual monetary
tightening, the report took the edge off concern about firmer
action. []
"The data probably slightly eased expectations of immediate
tightening, although in the overall scheme of things, this
doesn't change the fact that China is still in a tightening
phase," said Etsuko Yamashita, chief economist at SMBC.
Inflation pressures, particularly in emerging markets, have
been part of the motivation this year for investors to move into
developed stock markets.
A number of those countries are also having problems,
however, particularly Britain. U.S. consumer price data,
meanwhile, will be reported on Thursday.
In Europe, the French and German economies expanded by less
than expected in the fourth quarter, data showed on Tuesday,
suggesting the euro zone may not have accelerated out of a
third-quarter slowdown. []
EURO PERIPHERY
The euro steadied, supported by Asian demand, but was held
back by scepticism that European leaders would come up with a
quick and effective solution to tackle the euro zone's debt and
banking problems.
It hovered near a three-week low hit a day earlier when
reports about ailing lender WestLB triggered another outbreak of
worries on euro zone debt and banking problems.
Peripheral euro zone yield spreads have been widening in the
past week on uncertainty over a rescue package for the region,
and there was some disappointment after a meeting of European
finance ministers on Monday. []
"Initial optimism at the beginning of the year over a
comprehensive bailout package in the euro zone is now starting
to fade away," said Lee Hardman, currency strategist at BTM UFJ.
The euro <EUR=> was flat against the dollar at $1.3480, not
far from a three-week low of $1.3428 hit on Monday.
The 10-year German bond yield <DE10YT=TWEB> was up 1 basis
point at 3.31 percent, while the two-year yield <DE2YT=TWEB>
rose to same to 1.41 percent.
(Additional reporting by Neal Armstrong; Editing by Hugh
Lawson)
