LONDON, Feb 23 — European shares were slightly firmer and the euro hovered near a two-week high today as investors awaited further evidence on the health of the global economy as rising oil prices add to worries about Europe and cool demand for riskier assets.

Oil prices have been gaining on supply concerns heightened by tension between Iran and the West and rose for a third straight day yesterday to a nine-month high of high of US$122.90 (RM371.50) a barrel. In early trade Brent crude for April delivery down 8 cents to US$122.82.

Attention is focused on the German Ifo business sentiment survey, due at 0900 GMT, after a purchasing manager’s survey on Tuesday showed the manufacturing and service sectors in Europe’s largest economy was slowing. A similar indicator for China suggested its giant export sector may also be slowing down.

“A better German Ifo index could help euro/dollar, but a big negative number would get people worried about the more positive growth story that’s been building about the euro zone economy,” Ankita Dudani, currency strategist at RBS.

The euro was up about 0.2 per cent at around US$1.3270, struggling to break a near two-week high of US$1.3293 hit on Tuesday after a second bailout for Greece was announced.

European stocks were barely changed at the open at 1077.51 while the MSCI world equity index was up 0.21 per cent despite a weak session in Asia.

Bund futures were 26 ticks higher on the day at 138.79, while 10-year cash yields DE10YT=TWEB were stable at 1.90 per cent. — Reuters