(Updates with U.S. data)
By Veronica Brown
LONDON, April 16 (Reuters) - European shares remained higher
and U.S. stock futures pointed up on Wednesday after JPMorgan
results were not as bad as some expected, while robust euro zone
inflation swept the euro to a record high versus the dollar.
U.S. consumer price inflation and below-forecast housing
data kept the dollar on the backfoot as the euro neared $1.60,
while the U.S. currency's slide also ushered dollar-priced oil
to a record peak above $114 a barrel while gold rose.
Markets had been jittery ahead of the JP Morgan Chase & Co
<JPM.N> results, with nerves frayed at the prospect of further
fallout from the global credit crunch on corporate
profitability.
Profit for the third-largest U.S. bank fell to $2.37
billion, or 68 cents per share, from $4.79 billion, or $1.34, a
year earlier, hurt by write-downs for leveraged loans and
mortgages and by an increase in credit reserves.
The result was not as dire as some forecasts had predicted.
"Overall it is a good set of figures," said Martin Slaney,
head of derivatives at GFT Global Markets in London.
"Overall given the current turmoil in the broader market,
you've got to be happy with these figures. We are going to see
this providing support to the market today," he added.
S&P 500 futures <SPc1> were up 10.0 points, above fair
value, a mathematical formula that evaluates pricing by taking
into account interest rates, dividends and time to expiration on
the contract.
Dow Jones industrial average futures <DJc1> rose 78 points,
and Nasdaq 100 <NDc1> futures added 27 points.
The FTSEurofirst 300 index of leading European shares was up
0.8 percent to 1291.86, echoing a strong showing from Tokyo's
Nikkei average, which rose 1.2 percent <>.
Despite a tentative improvement in risk appetite and tighter
credit spreads fuelled by equity market gains, the dollar faced
wider pressure.
INFLATION DOMINATION
Inflation messages were mixed from the two sides of the
Atlantic.
While euro zone consumer prices rose one percent
month-on-month, creating the highest annual inflation rate since
measurements for the euro area began in 1997 [], U.S.
consumer prices rose 0.3 percent in March, slightly less than
expected [].
"The euro zone inflation data...continues to reinforce the
hawkish stance of the ECB, and that's in stark contrast to the
Federal Reserve which we expect to continue easing monetary
policy," said Lee Hardman, currency economist at BTM UFJ.
The euro sped to a record $1.5968 <EUR=>, kicking oil on to
a historic $114.53 <CLc1>. Upside pressure on the euro has been
intensified by expectations for borrowing costs to remain at 4
percent during the rest of the year.
By contrast the U.S. Federal Reserve is expected to keep
cutting rates in a bid to stem slowing growth and stave off
recession.
Other data showed U.S. home building projects started in
March fell by 11.9 percent to a lower-than-expected annual rate
while building permit activity, a sign of future construction
plans, was off 5.8 percent [].
U.S. interest rate futures show that investors see a roughly
80 percent chance of the Fed lowering rates by 25 basis points
at its April 29-30 policy meeting, compared with a 20 percent
chance of a 50 basis point cut.
(Additional reporting by Simon Falush)
(Editing by Gerrard Raven)
