Clashes in Cairo after Mursi seizes new powers

CAIRO (Reuters) - Angry youths hurled rocks at security forces and burned a police truck as thousands gathered in central Cairo to protest at Egyptian President Mohamed Mursi's decision to grab sweeping new powers.

Police fired tear gas near Tahrir Square, heart of the 2011 uprising that toppled Hosni Mubarak at the height of the Arab Spring. Thousands demanded that Mursi should quit and accused him of launching a "coup".

There were also violent protests in Alexandria, Port Said and Suez.

Mursi on Thursday issued a decree that puts his decisions beyond any legal challenge until a new parliament is elected. Opponents immediately accused him of turning into a new Mubarak and hijacking the Egyptian revolution.

"This is the point of no return for Mursi. He has dug himself deeper in a hole and won't know how to get out of it," said Ahmed Saleh, an activist who said many would stay in Tahrir square until Mursi withdrew the decree.

"The people want to bring down the regime," shouted protesters in Tahrir, echoing a chant used in the uprising that forced Mubarak to step down.

The United States, the European Union and the United Nations expressed concern at Mursi's move.

Mursi's rivals condemned him as an autocratic pharaoh who wanted to impose his Islamist vision on Egypt.

The president's aides said the decree was intended to speed up a protracted transition to democracy that has been hindered by legal obstacles

"I am for all Egyptians," Mursi said on a stage outside the presidential palace, adding that he was working for social and economic stability and remained committed to the revolution.

JUDGES MEET

Egyptian judges will meet on Saturday to respond to Mursi's move, which put him above the judicial oversight. The judges could threaten to go on strike, which would bring the judiciary to a halt.

Some non-Islamist political parties called for a million-strong march on Tuesday to demand that Mursi rescinds his decree.

But Islamist parties, including the Building and Development Party, accused Mursi's opponents of undermining the democratic process that brought him to office.

"Those calling for the downfall of President Mohamed Mursi have rejected democracy because President Mursi has been democratically elected by popular will," the party said in a statement. Mursi's decree would "save the revolution from the remnants of Mubarak's regime", it said.

Buoyed by accolades from around the world for mediating a truce between Hamas and Israel in the Gaza Strip, Mursi on Thursday ordered that an Islamist-dominated assembly writing the new constitution could not be dissolved by legal challenges.

Mursi, an Islamist whose roots are in the Muslim Brotherhood, also gave himself wide powers that allowed him to sack the unpopular public prosecutor and opened the door for a retrial for Mubarak and his aides.

TURBULENCE AND TURMOIL

The president's decree has consolidated his power but looks set to polarize Egypt further, threatening more turmoil in a nation at the heart of the Arab Spring.

In Alexandria, north of Cairo, protesters ransacked an office of the Brotherhood's political party, burning books and chairs in the street. Supporters of Mursi and opponents clashed elsewhere in the city, leaving 12 injured.

A party building was attacked by stone-throwing protesters in Port Said, and demonstrators in Suez threw petrol bombs that burned banners outside the party building.

Although Washington has praised Egypt for its part in bringing Israelis and Palestinians to a ceasefire on Wednesday, it expressed reservations about Mursi's latest move.

"The decisions and declarations announced on November 22 raise concerns for many Egyptians and for the international community," State Department spokeswoman Victoria Nuland said in a statement.

The European Union urged Mursi to respect the democratic process, while the United Nations expressed fears about human rights.

"The decree is basically a coup on state institutions and the rule of law that is likely to undermine the revolution and the transition to democracy," said Mervat Ahmed, an independent activist in Tahrir protesting against the decree.

Leading liberal Mohamed ElBaradei, who joined other politicians on Thursday night to demand the decree was withdrawn, wrote on his Twitter account that Mursi had "usurped all state powers and appointed himself Egypt's new pharaoh".

Almost two years after Mubarak was toppled and about five months since Mursi took office, Egypt has no permanent constitution, which must be in place before new parliamentary elections are held.

An assembly drawing up the constitution has yet to complete its work. Many liberals, Christians and others have walked out accusing the Islamists who dominate it of ignoring their voices over the extent that Islam should be enshrined in the new state.

(Additional reporting by Tom Miles in Geneva and Sebastian Moffett in Brussels; Editing by Giles Elgood)

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Facebook and volatile market still chill IPOs

Making a killing on initial public offerings used to be easy.

At the peak of the technology boom, little more than a decade ago, a plentiful supply of companies vied to sell stock on the exchanges, and investors were assured mouthwatering returns.

These days, the deals are fewer and the returns more modest.

Companies are set to raise more than $ 45 billion through IPOs this year — the most since 2007, according to data provider Dealogic. But if you scratch the surface, there are signs that the market is less healthy than it appears.

Almost a third of the money raised in IPOs this year came from one deal, Facebook‘s $ 16 billion offering in May, and the number of companies taking themselves public may end at a three-year low.

The pipeline, or backlog, of companies planning to sell stock is also thinning.

“It’s a reflection of the psychology of the market today. It’s not strong. It’s moderate to weak,” says Rob Lutts, chief investment officer at Cabot Money Management in Salem, Mass.

While 437 companies have filed for an IPO this year, 178 have withdrawn or postponed their planned listings, Dealogic data show.

The state of the IPO market matters beyond Wall Street. Besides giving investors the chance to buy into fast-growing parts of the market, offerings give companies the money to expand and hire workers.

Scott Cutler, head of global listings at NYSE Euronext, which runs the New York Stock Exchange, estimates that more than 90 percent of a public company’s employee growth comes after it has listed on an exchange.

IPO activity is dictated largely by the health of the overall stock market. Falling markets discouraging companies from going public.

The Standard & Poor’s 500 is up 11 percent this year, but the advance has been punctuated by sharp declines when investors fretted about European debt, the election and, now, a looming “cliff” of tax increases and government spending cuts.

“The general market has been real choppy this year. It really has,” says Sal Morreale, an institutional salesman at Cantor Fitzgerald in Los Angeles who tracks offerings.

Facebook’s calamitous market debut also put the brakes on IPOs.

The social networking site’s offering was the most keenly anticipated market debut at least since Google’s in 2004. But concerns about revenue from smartphone users spooked investors, and the offering was plagued by technical glitches.

The stock was priced at $ 38 and fell almost immediately, dropping as low as $ 17.55 on Sept. 4. The negative publicity helped shutter the IPO market for more than a month until EQT Midstream Partners, an energy company, sold stock June 16. Companies including American Tire Distributors and Crosair, a computer memory company, were among those withdrawing their IPOs.

“That deal has become a textbook case of how not to do a deal,” says Quincy Krosby, a market strategist with Newark, N.J.-based Prudential Financial. “That IPO really chastened investors.”

The backlog of companies planning IPOs fell to 39 in November, according to data from Ipreo, a market analysis company firm. That is the fewest since August 2009, just after the recession. The tally has been declining steadily since September 2011.

NYSE’s Cutler says that much of the decline is because of a law passed in April designed to make it easier for companies to attract funding. They can confidentially notify regulators of their intention to seek a listing.

Cutler says that if the business environment remains stable, the pace of IPO filling will be “slightly up” next year as companies become more familiar with the law.

The law allows companies to avoid disclosing competitively sensitive information and come to the market at much shorter notice. Ultimately, it will encourage more companies to seek listings, Cutler says.

Despite Facebook‘s high-profile slump, most companies have left something on the table for investors.

The average return for IPOs this year has been 11 percent, according to Dealogic data. That’s less than the average 88 percent one-year return that investors garnered in 1999 but roughly in line with the broader market.

Among the best debuts: Guidewire Software, a provider of software for the insurance industry, and Nationstar Mortgage Holdings, a Texas mortgage provider and servicer, according to data from IPO investment advisory firm Renaissance Capital.

Investors that bought Guidewire’s stock at $ 13 at its market debut in January have seen it rise to almost $ 30, while Nationstar’s stock has almost doubled from $ 14 to $ 27.35.

There are some advantages to a slow IPO market, says Lutts of Cabot Money Management. When demand is low, only the best companies are able to attract enough demand to list on the exchanges, raising the quality of companies coming to the market. And it can be an indicator that the broader market is oversold and thus offers some bargains.

“When we’re frothy, everything is coming at a premium,” Lutts says. “I’m interested in equities today because of a weak IPO market.”

Social Media News Headlines – Yahoo! News

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Larry Hagman Dies

TV Watch

TV News

By Aaron Parsley

11/24/2012 at 12:00 AM EST

Larry Hagman has died.

The actor, who famously played J.R. Ewing on the hit primetime soap Dallas, was 81.

"When he passed, he was surrounded by loved ones," his family said in a statement released to the Dallas Morning News on Friday. "It was a peaceful passing, just as he had wished for. The family requests privacy at this time."

"This is so sad. Larry was really someone who was loved by everyone," his agent Joel Dean tells PEOPLE. "Me especially. He was the most loving, wonderful, generous man. And he was a true trouper."

In late 2011, Hagman announced that he was battling cancer but he had also signed on to star in the TNT reboot of Dallas, which recently started filming its second season.

"Larry was back in his beloved Dallas, re-enacting the iconic role he loved most," his family said in the statement.

In addition to portraying J.R. – a lovable, scheming, villainous oilman, whose shooting death was a topic of international water-cooler discussion – Hagman starred alongside Barbara Eden as Major Anthony Nelson in the iconic '60s hit sitcom I Dream of Jeannie.

According to the Morning News report, Hagman's Dallas costars Linda Gray and Patrick Duffy were by his side on Friday at Medical City Dallas Hospital when he died.

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AP PHOTOS: Simple surgery heals blind Indonesians

PADANG SIDEMPUAN, Indonesia (AP) — They came from the remotest parts of Indonesia, taking crowded overnight ferries and riding for hours in cars or buses — all in the hope that a simple, and free, surgical procedure would restore their eyesight.

Many patients were elderly and needed help to reach two hospitals in Sumatra where mass eye camps were held earlier this month by Nepalese surgeon Dr. Sanduk Ruit. During eight days, more than 1,400 cataracts were removed.

The patients camped out, sleeping side-by-side on military cots, eating donated food while fire trucks supplied water for showers and toilets. Many who had given up hope of seeing again left smiling after their bandages were removed.

"I've been blind for three years, and it's really bad," said Arlita Tobing, 65, whose sight was restored after the surgery. "I worked on someone's farm, but I couldn't work anymore."

Indonesia has one of the highest rates of blindness in the world, making it a target country for Ruit who travels throughout the developing world holding free mass eye camps while training doctors to perform the simple, stitch-free procedure he pioneered. He often visits hard-to-reach remote areas where health care is scarce and patients are poor. He believes that by teaching doctors how to perform his method of cataract removal, the rate of blindness can be reduced worldwide.

Cataracts are the leading cause of blindness globally, affecting about 20 million people who mostly live in poor countries, according to the World Health Organization.

"We get only one life, and that life is very short. I am blessed by God to have this opportunity," said Ruit, who runs the Tilganga Eye Center in Katmandu, Nepal. "The most important of that is training, taking the idea to other people."

During the recent camps, Ruit trained six doctors from Indonesia, Thailand and Singapore.

Here, in images, are scenes from the mobile eye camps:

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Stock index futures signal flat to higher open

LONDON (Reuters) - Stock index futures pointed to a flat to higher open on Friday, with futures for the S&P 500 staying flat, the Dow Jones futures up 0.3 percent and the Nasdaq 100 futures rising 0.3 percent.

The market opens for a half-day business on Friday after the Thanksgiving holiday on Thursday.

Shoppers took advantage of retailers offering a Thursday night start to the traditional post-Thanksgiving holiday shopping season, lining up at stores to get deals on electronics and other items or to just see what the fuss was about.

Shares of Research In Motion Ltd surged 17.3 percent in Toronto on Thursday on rising optimism around RIM's soon-to-be-launched BlackBerry 10 devices that will vie against Apple's iPhone and Android-based smartphones.

The U.S. Federal Reserve's securities portfolio has not reached a level where it would impede the central bank from carrying on with its bond-buying programs, John Williams, the president of the San Francisco Federal Reserve Bank, told the Wall Street Journal in an interview.

Blackstone Group LP and China agribusiness company New Hope Group are through to the final round of bidding for Australia's largest poultry producer Inghams Enterprises, a deal that could be worth as much as A$1.4 billion ($1.5 billion), sources with knowledge of the matter told Reuters.

The Indian joint venture of Wal-Mart Stores Inc has suspended its chief financial officer and other employees as it investigates alleged violations of U.S. anti-bribery laws, a development that could hamper India's efforts to open its domestic supermarket sector to foreign investment.

Pfizer Inc has cut the Canadian price of its Viagra erectile dysfunction drug after the Supreme Court of Canada opened the door to sales of generic versions of the drug, the company said on Thursday.

European shares <.fteu3> were 0.2 percent lower on Friday after opening higher, with investors booking profits after four straight days of gains.

Prospects of a deal on the European Union's long-term budget dimmed on Friday after a fresh compromise proposal offered concessions to France and Poland but ignored British and German demands for deeper overall spending cuts.

International lenders have agreed new steps to cut Greece's debt pile further but it still has to fill a 10 billion euro ($13 billion) gap to gain the IMF's approval for its next tranche of aid, a senior Greek government official said on Friday.

Stocks finished modestly higher on Wednesday, with the S&P 500 up for a fourth session, although volume was one of the year's lowest on the day ahead of the Thanksgiving holiday.

On Wednesday, the Dow Jones industrial average <.dji> gained 48.38 points, or 0.38 percent, to end at 12,836.89. The Standard & Poor's 500 Index <.spx> added 3.22 points, or 0.23 percent, to finish at 1,391.03. The Nasdaq Composite Index <.ixic> rose 9.87 points, or 0.34 percent, to close at 2,926.55.

(Reporting by Atul Prakash)

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Gaza ceasefire holds but mistrust runs deep

GAZA/JERUSALEM (Reuters) - A ceasefire between Israel and Hamas held firm on Thursday with scenes of joy among the ruins in Gaza over what Palestinians hailed as a victory, and both sides saying their fingers were still on the trigger.

In the sudden calm, Palestinians who had been under Israeli bombs for eight days poured into Gaza streets for a celebratory rally, walking past wrecked houses and government buildings.

But as a precaution, schools stayed closed in southern Israel, where nerves were jangled by warning sirens - a false alarm, the army said - after a constant rain of rockets during the most serious Israeli-Palestinian fighting in four years.

Israel had launched its strikes last week with a declared aim of ending rocket attacks on its territory from Gaza, ruled by the Islamist militant group Hamas, which denies Israel's right to exist. Hamas had responded with more rockets.

The truce brokered by Egypt's new Islamist leaders, working with the United States, headed off an Israeli invasion of Gaza.

It was the fruit of intensive diplomacy spurred by U.S. President Barack Obama, who sent his secretary of state to Cairo and backed her up with phone calls to Israeli Prime Minister Benjamin Netanyahu and Egyptian President Mohamed Mursi.

Mursi's role in cajoling his Islamist soulmates in Gaza into the U.S.-backed deal with Israel suggested that Washington can find ways to cooperate with the Muslim Brotherhood leader whom Egyptians elected after toppling former U.S. ally Hosni Mubarak, a bulwark of American policy in the Middle East for 30 years.

Mursi, preoccupied with Egypt's economic crisis, cannot afford to tamper with a 1979 peace treaty with Israel, despite its unpopularity with Egyptians, and needs U.S. financial aid.

MORE DEATHS

Despite the quiet on the battlefield, the death toll from the Gaza conflict crept up on both sides.

The body of Mohammed al-Dalu, 25, was recovered from the rubble of a house where nine of his relatives - four children and five women - were killed by an Israeli bomb this week.

That raised to 163 the number of Palestinians killed, more than half of them civilians, including 37 children, during the Israeli onslaught, according to Gaza medical officials.

Nearly 1,400 rockets struck Israel, killing four civilians and two soldiers, including an officer who died on Thursday of wounds sustained the day before, the Israeli army said.

Israel dropped 1,000 times as much explosive on the Gaza Strip as landed on its soil, Defense Minister Ehud Barak said.

Municipal workers in Gaza began cleaning streets and removing the rubble of bombed buildings. Stores opened and people flocked to markets to buy food.

Jubilant crowds celebrated, with most people waving green Hamas flags but some carrying the yellow emblems of the rival Fatah group, led by Western-backed President Mahmoud Abbas.

That marked a rare show of unity five years after Hamas, which won a Palestinian poll in 2006, forcibly wrested Gaza from Fatah, still dominant in the Israeli-occupied West Bank.

Israel began ferrying tanks northwards, away from the border, on transporters. It plans to discharge gradually tens of thousands of reservists called up for a possible Gaza invasion.

But trust between Israel and Hamas remains in short supply and both said they might well have to fight again.

"The battle with the enemy has not ended yet," Abu Ubaida, spokesman of Hamas's armed wing Izz el-Deen Al-Qassam Brigades, said at an event to mourn its acting military chief Ahmed al-Jaabari, whose killing by Israel on November 14 set off this round.

"HANDS ON TRIGGER"

The exiled leader of Hamas, Khaled Meshaal, said in Cairo his Islamist movement would respect the truce, but warned that if Israel violated it "our hands are on the trigger".

Netanyahu said he had agreed to "exhaust this opportunity for an extended truce", but told Israelis a tougher approach might be required in the future.

Facing a national election in two months, he swiftly came under fire from opposition politicians who had rallied to his side during the fighting but now contend he emerged from the conflict with no real gains for Israel.

"You don't settle with terrorism, you defeat it. And unfortunately, a decisive victory has not been achieved and we did not recharge our deterrence," Shaul Mofaz, leader of the main opposition Kadima party, wrote on his Facebook page.

In a speech, Ismail Haniyeh, Hamas's prime minister in Gaza, urged all Palestinian factions to respect the ceasefire and said his government and security services would monitor compliance.

According to a text of the agreement seen by Reuters, both sides should halt all hostilities, with Israel desisting from incursions and targeting of individuals, while all Palestinian factions should cease rocket fire and cross-border attacks.

The deal also provides for easing Israeli curbs on Gaza's residents, but the two sides disagreed on what this meant.

Israeli sources said Israel would not lift a blockade of the enclave it enforced after Hamas won a Palestinian election in 2006, but Meshaal said the deal covered the opening of all of the territory's border crossings with Israel and Egypt.

Israel let dozens of trucks carry supplies into the Palestinian enclave during the fighting. Residents there have long complained that Israeli restrictions blight their economy.

Barak said Hamas, which declared November 22 a national holiday to mark its "victory", had suffered heavy military blows.

"A large part of the mid-range rockets were destroyed. Hamas managed to hit Israel's built-up areas with around a metric tone of explosives, and Gaza targets got around 1,000 metric tonnes," he said.

He dismissed a ceasefire text published by Hamas, saying: "The right to self-defense trumps any piece of paper."

He appeared to confirm, however, a Hamas claim that the Israelis would no longer enforce a no-go zone on the Gaza side of the frontier that the army says has prevented Hamas raids.

(Additional reporting by Noah Browning in Gaza, Ori Lewis, Crispian Balmer and Dan Williams in Jerusalem; Writing by Jeffrey Heller and Alistair Lyon; Editing by Giles Elgood)

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Jake Owen Welcomes a Daughter

Mom & Babies
Celebrity Baby Blog

11/22/2012 at 08:30 PM ET

Courtesy Jake Owen

It’s a Thanksgiving baby!

Jake Owen and his wife Lacey welcomed their first child, daughter Olive Pearl Owen, on Thursday, Nov. 22 in Nashville, Tenn., his rep confirms to PEOPLE.

Pearl, as she will be called after Owen’s late godmother, weighed in at 6 lbs., 3 oz. and is 19½ inches long.

“Lacey and I are so excited to start our own family,” Owen, 31, tells PEOPLE. “We are looking forward to teaching Pearl everything we learned from our parents and also learning from her.”

Sharing a photo of his newborn daughter on Twitter, the musician wrote, “Today is the greatest day of my life. Turkey baby!!! Happy Thanksgiving.”

It’s been a whirlwind year for Owen and his wife, 22. After getting engaged on stage in April, the couple wed on the beach in May and announced the pregnancy in July.

– Sarah Michaud with reporting by Julie Dam

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Study finds mammograms lead to unneeded treatment

Mammograms have done surprisingly little to catch deadly breast cancers before they spread, a big U.S. study finds. At the same time, more than a million women have been treated for cancers that never would have threatened their lives, researchers estimate.

Up to one-third of breast cancers, or 50,000 to 70,000 cases a year, don't need treatment, the study suggests.

It's the most detailed look yet at overtreatment of breast cancer, and it adds fresh evidence that screening is not as helpful as many women believe. Mammograms are still worthwhile, because they do catch some deadly cancers and save lives, doctors stress. And some of them disagree with conclusions the new study reached.

But it spotlights a reality that is tough for many Americans to accept: Some abnormalities that doctors call "cancer" are not a health threat or truly malignant. There is no good way to tell which ones are, so many women wind up getting treatments like surgery and chemotherapy that they don't really need.

Men have heard a similar message about PSA tests to screen for slow-growing prostate cancer, but it's relatively new to the debate over breast cancer screening.

"We're coming to learn that some cancers — many cancers, depending on the organ — weren't destined to cause death," said Dr. Barnett Kramer, a National Cancer Institute screening expert. However, "once a woman is diagnosed, it's hard to say treatment is not necessary."

He had no role in the study, which was led by Dr. H. Gilbert Welch of Dartmouth Medical School and Dr. Archie Bleyer of St. Charles Health System and Oregon Health & Science University. Results are in Thursday's New England Journal of Medicine.

Breast cancer is the leading type of cancer and cause of cancer deaths in women worldwide. Nearly 1.4 million new cases are diagnosed each year. Other countries screen less aggressively than the U.S. does. In Britain, for example, mammograms are usually offered only every three years and a recent review there found similar signs of overtreatment.

The dogma has been that screening finds cancer early, when it's most curable. But screening is only worthwhile if it finds cancers destined to cause death, and if treating them early improves survival versus treating when or if they cause symptoms.

Mammograms also are an imperfect screening tool — they often give false alarms, spurring biopsies and other tests that ultimately show no cancer was present. The new study looks at a different risk: Overdiagnosis, or finding cancer that is present but does not need treatment.

Researchers used federal surveys on mammography and cancer registry statistics from 1976 through 2008 to track how many cancers were found early, while still confined to the breast, versus later, when they had spread to lymph nodes or more widely.

The scientists assumed that the actual amount of disease — how many true cases exist — did not change or grew only a little during those three decades. Yet they found a big difference in the number and stage of cases discovered over time, as mammograms came into wide use.

Mammograms more than doubled the number of early-stage cancers detected — from 112 to 234 cases per 100,000 women. But late-stage cancers dropped just 8 percent, from 102 to 94 cases per 100,000 women.

The imbalance suggests a lot of overdiagnosis from mammograms, which now account for 60 percent of cases that are found, Bleyer said. If screening were working, there should be one less patient diagnosed with late-stage cancer for every additional patient whose cancer was found at an earlier stage, he explained.

"Instead, we're diagnosing a lot of something else — not cancer" in that early stage, Bleyer said. "And the worst cancer is still going on, just like it always was."

Researchers also looked at death rates for breast cancer, which declined 28 percent during that time in women 40 and older — the group targeted for screening. Mortality dropped even more — 41 percent — in women under 40, who presumably were not getting mammograms.

"We are left to conclude, as others have, that the good news in breast cancer — decreasing mortality — must largely be the result of improved treatment, not screening," the authors write.

The study was paid for by the study authors' universities.

"This study is important because what it really highlights is that the biology of the cancer is what we need to understand" in order to know which ones to treat and how, said Dr. Julia A. Smith, director of breast cancer screening at NYU Langone Medical Center in New York. Doctors already are debating whether DCIS, a type of early tumor confined to a milk duct, should even be called cancer, she said.

Another expert, Dr. Linda Vahdat, director of the breast cancer research program at Weill Cornell Medical College in New York, said the study's leaders made many assumptions to reach a conclusion about overdiagnosis that "may or may not be correct."

"I don't think it will change how we view screening mammography," she said.

A government-appointed task force that gives screening advice calls for mammograms every other year starting at age 50 and stopping at 75. The American Cancer Society recommends them every year starting at age 40.

Dr. Len Lichtenfeld, the cancer society's deputy chief medical officer, said the study should not be taken as "a referendum on mammography," and noted that other high-quality studies have affirmed its value. Still, he said overdiagnosis is a problem, and it's not possible to tell an individual woman whether her cancer needs treated.

"Our technology has brought us to the place where we can find a lot of cancer. Our science has to bring us to the point where we can define what treatment people really need," he said.

___

Online:

Study: http://www.nejm.org/doi/full/10.1056/NEJMoa1206809

Screening advice: http://www.uspreventiveservicestaskforce.org/uspstf/uspsbrca.htm

___

Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP

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Global shares rally on brighter global economic outlook

LONDON (Reuters) - World share markets extended a week-long rally on Thursday as manufacturing surveys in China and the United States boosted confidence over the growth outlook and euro zone data was not as weak as some had feared.

The single currency also touched a two-week high against the dollar, despite data indicating the euro zone's economy is on course for its deepest downturn since early 2009, on renewed optimism of a deal emerging to provide aid payments to Greece.

"The driving factors behind euro/dollar are that the global macroeconomic backdrop seems to be improving and people are pricing out the tail risk on Greece," said Arne Lohmann Rasmussen, head of currency research at Danske Bank.

The euro rose 0.3 percent to $1.2869, its highest level since November 7.

The prospects of a deal to help Athens were boosted when German Chancellor Angela Merkel said on Wednesday after the failure of overnight talks that an agreement was possible when euro zone ministers meet again on Monday.

The likelihood of a deal, combined with better economic data and a growing view that a resolution can be found to the U.S. fiscal crisis lifted the MSCI's world equity index 0.3 percent to 325.75 points, putting it on track for its best week since mid-September.

Europe's FTSE Eurofirst 300 index rose 0.4 percent to a two-week high of 1,101.90 points, with London's FTSE 100, Paris's CAC-40 and Frankfurt's DAX between 0.3 and 0.7 percent higher.

However, trading across all markets was subdued, with U.S. markets closed for the Thanksgiving holiday.

CHINA BOOST

Confidence in the global economic outlook got its biggest lift from the HSBC flash Manufacturing Purchasing Managers Index (PMI) for China, which pointed to expansion after seven consecutive quarters of slowdown.

"There have been a lot of concerns regarding the outlook for global growth. In this context, any improvement in Chinese data is welcome, given that investors are still risk averse," said Robert Parkes, equity strategist at HSBC Securities.

The Chinese data followed an report on Wednesday showing U.S. manufacturing grew in November at its quickest pace in five months, indicating strong economic growth in the fourth quarter.

PMI data on the manufacturing and services sectors in Europe's two biggest economies of Germany and France added to the better tone, revealing that conditions had not worsened in November, though both economies are still contracting.

However, the PMI numbers for the wider euro zone remain extremely weak, pointing to the recession-hit region shrinking by about 0.5 percent in the current quarter - its sharpest contraction since the first quarter of 2009.

BOND DEMAND

Amid the improving appetite for riskier assets, Spain sold 3.88 billion euros ($4.97 billion) of new government bonds on Thursday, though it has already raised enough funds for this year's needs.

The average yield on the three-year bonds in the auction was 3.617 percent, compared with 3.66 percent at a sale earlier in November and a 2012 average of 3.79 percent.

Ten-year Spanish yields were 6 basis points lower on the day at 5.67 percent, having traded above 6 percent at the start of the week.

German 10-year bonds yields, which tend to rise as investors' anxiety over the euro zone outlook ease, were up slightly at 1.439 percent.

COMMODITIES STEADY

Commodity prices gained some support form the improving outlook for world demand from all the PMI data, but prospects of only modest global growth in 2013 kept gains in check.

London copper rose 0.6 percent to $7,740 a metric tonne, and spot gold inched up to $1,730 an ounce.

Brent crude oil dipped under $111 per barrel as a ceasefire between Israel and Gaza's Hamas rulers eased concerns over the impact the unrest may have on supply from the region.

Brent slipped 34 cents to $110.52 a barrel, while U.S. crude was steady at $87.38.

(Reporting by Richard Hubbard; Editing by Will Waterman)

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Gaza ceasefire takes hold but mistrust runs deep

GAZA/JERUSALEM (Reuters) - A ceasefire between Israel and Gaza's Hamas rulers took hold on Thursday after eight days of conflict, although deep mistrust on both sides cast doubt on how long the Egyptian-sponsored deal can last.

Quiet reigned on both sides of the frontier overnight and during the morning after a dozen rockets landed in Israel in the initial hours after the truce came into force late on Wednesday. Israeli police said there had been no casualties or damage.

The deal brokered by Egypt's new Islamist government, working with the United States, prevented - at least for the moment - an Israeli invasion of the Palestinian enclave.

Gaza medical officials said 162 Palestinians, more than half of them civilians, including 37 children and 11 women, were killed. Nearly 1,400 rockets were fired into Israel, killing four civilians and a soldier, the Israeli military said.

Israel's defense minister said Israel dropped 1,000 times as much explosive on the Gaza Strip as had landed in Israel.

Municipal workers in Gaza began cleaning streets and removing the rubble of buildings bombed in Israel's air strikes. Stores opened and people flocked to markets to buy food.

"Israel learnt a lesson it will never forget," said 51-year-old Khalil al-Rass from Beach refugee camp in the city of Gaza.

In rocket-hit towns in southern Israel, schools remained closed as a precaution. Nerves were jangled when warning sirens sounded, in what the military quickly said was a false alarm.

Trust was in short supply. The exile leader of Hamas, Khaled Meshaal, said his Islamist movement would respect the truce if Israel did, but would respond to any violations. "If Israel complies, we are compliant. If it does not comply, our hands are on the trigger," he told a news conference in Cairo.

Israeli Prime Minister Benjamin Netanyahu said he had agreed to "exhaust this opportunity for an extended truce", but told his people a tougher approach might be required in the future.

Facing a national election in two months, he swiftly came under fire from opposition politicians who rallied to his side during the fighting but now contend he emerged from the conflict with no real gains for Israel.

"You don't settle with terrorism, you defeat it. And unfortunately, a decisive victory has not been achieved and we did not recharge our deterrence," Shaul Mofaz, leader of the main opposition Kadima party, wrote on his Facebook page.

BLOCKADE

If the truce holds, it will give the 1.7 million Gazans respite from days of air strikes and halt rocket salvoes from militants that have unnerved a million people in southern Israel and reached Tel Aviv and Jerusalem for the first time.

Both sides quickly began offering differing interpretations of the ceasefire, which highlighted the many actual or potential areas of discord.

According to a text of the agreement seen by Reuters, both sides should halt all hostilities, with Israel desisting from incursions and targeting of individuals, while all Palestinian factions should cease rocket fire and cross-border attacks.

The deal also provides for easing Israeli restrictions on Gaza's residents, who live in what British Prime Minister David Cameron has called an "open prison".

The text said procedures for implementing this would be "dealt with after 24 hours from the start of the ceasefire".

Israeli sources said Israel would not lift a blockade of the enclave it enforced after Hamas, which preaches the Jewish state's destruction, won a Palestinian election in 2006.

However, Meshaal said the deal covered the opening of all of the territory's border crossings. "The document stipulates the opening of the crossings, all the crossings, and not just Rafah," he said. Israel, trying to stop Hamas arming itself, controls all entry to Gaza apart from one crossing with Egypt.

Israel let dozens of trucks carry supplies into the Palestinian enclave during the fighting. Residents there have long complained that Israeli restrictions blight their economy.

HAMAS HOLIDAY

Meshaal thanked Egypt for mediating and praised Iran for providing Gazans with financing and arms. "We have come out of this battle with our heads up high," he said, adding that Israel had been defeated and failed in its "adventure".

Israeli Defense Minister Ehud Barak said Hamas had suffered a heavy military blow, including the death of its top commander, killed in an air strike at the start of the operation on November 14 and the deal merely let Hamas surrender while saving face.

"A large part of the mid-range rockets were destroyed. Hamas managed to hit Israel's built-up areas with around a metric tonne of explosives, and Gaza targets got around 1,000 metric tonnes," Barak told Israel Radio.

"So whoever misses what is happening in Gaza does not understand that this entire agreement is a paper bridge for the defeated so that they can explain to their public how they can even show their faces after what they were hit with for a week."

Hamas declared November 22 a national holiday marking "the victory of the resistance". Its spokesman, Sami Abu Zuhri, said: "Resistance has achieved and has imposed a new formula - if you hit Gaza, we will hit Tel Aviv and beyond Tel Aviv.

Some Israelis staged protests against the deal, notably in the southern town of Kiryat Malachi, where three civilians were killed by a rocket from Gaza last week, army radio said.

Interviewed on Israel's Army Radio, Barak dismissed a ceasefire text published by Hamas as "a piece of paper which I don't remember anyone going around with - there's no signature on it".

He appeared to confirm, however, a key Hamas claim that the Israelis would no longer enforce a no-go zone on the Gaza side of the frontier that the army says has prevented Hamas raids:

"If there are no attacks along the border ... then I tell you that there is no problem with them working the farmland on the perimeter up to the fence," Barak said.

But should the Palestinians exploit such measures to breach the truce, Israel would be "free to act," he said, adding: "The right to self-defense trumps any piece of paper."

CAIRO

Egypt, an important U.S. ally now under Islamist leadership, took centre stage in diplomacy to halt the bloodshed. Cairo has walked a fine line between sympathies for Hamas, an offshoot of the Muslim Brotherhood that produced President Mohamed Mursi and much of his government, and preserving its 1979 peace treaty with Israel and its ties with Washington, its main aid donor.

Announcing the agreement in Cairo, Egyptian Foreign Minister Mohamed Kamel Amr said mediation had "resulted in understandings to cease fire, restore calm and halt the bloodshed".

U.S. Secretary of State Hillary Clinton, standing beside Amr, thanked Mursi for peace efforts that showed "responsibility, leadership" in the region.

Gaza erupted in a Middle East already shaken by last year's Arab revolts that toppled several veteran U.S.-backed leaders, including Egypt's Hosni Mubarak, and by a civil war in Syria, where President Bashar al-Assad is fighting for survival.

Israel, the United States and the European Union all classify Hamas as a terrorist organization over its refusal to recognize Israel, renounce violence and accept existing interim Palestinian-Israeli peace deal.

But its stance is popular with many Palestinians and has kept the movement competitive with the secular Fatah movement of President Mahmoud Abbas, who remains in the occupied West Bank after losing Gaza to Hamas in a civil war five years ago.

The ceasefire was forged despite a bus-bomb explosion that wounded 15 Israelis in Tel Aviv on Wednesday and Israeli air strikes that killed 10 people in Gaza. It was the first serious bombing in Israel's commercial capital since 2006. There was no claim of responsibility, though Hamas praised the attack.

Israeli forces detained 55 suspected militants in the West Bank on Thursday, the military said, citing a need to prevent "the infiltration of terrorists into Israeli communities".

(Additional reporting by Noah Browning in Gaza, Ori Lewis, Allyn Fisher-Ilan, Crispian Balmer and Dan Williams in Jerusalem and Marwa Awad, Yasmine Saleh, Shaimaa Fayed and Tom Perry in Cairo; Writing by Jeffrey Heller, Alistair Lyon and David Stamp; Editing by Alastair Macdonald)

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