* Dollar at 16-month low
* Stocks weaker despite corporate activity
* Japan's Tankan points to supply chain problems
By Jeremy Gaunt, European Investment Correspondent
LONDON, April 14 (Reuters) - The dollar sank to a 16-month low against a basket of currencies on Thursday as investors bet U.S. monetary policy would continue to be loose, while a report that Chinese inflation will rise dragged on equities.
World stocks .MIWD00000PUS were flat to lower despite a burst of corporate activity that would usually lift investors' spirits.
Glencore [GLEN.UL], the world's largest commodities trading company, plans to raise up to $12.1 billion in a London and Hong Kong stock market floatation that is London's biggest ever. Shares in Japan's Isuzu Motors (7202.T) jumped on a report that Volkswagen (VOWG.DE) was considering buying all or part of it.
But European shares, as measured by the FTSEurofirst 300 .FTEU3 were down a half a percent, partly out of concern that Chinese inflation is returning.
Hong Kong's Phoenix TV, citing an unnamed source, said China's annual rate of inflation in March was likely to be 5.3-5.4 percent, a 32-month high and just above an estimate in a Reuters poll. [ID:nL3E7FE0EO]
Investors are particularly concerned about Chinese inflation in case government attempts to restrain it prompt a so-called hard landing for the economy.
"Inflation in emerging economies has become a serious issue, as the impact from high commodity prices is stronger for those countries," said Arnaud Scarpaci, fund manager at Paris-based Agilis Gestion.
Earlier, Nikkei benchmark .N225 closed up 0.1 percent, held back by continued worries about the impact of its earthquake, tsunami and nuclear disasters.
The Reuters Tankan survey of 400 large firms found on Thursday that power shortages caused by the crippled Fukushima nuclear plant had hit nearly 60 percent of local companies, disrupting production and supply chains. [ID:nnLME7DP00Q]
WEAK DOLLAR
* Dollar at 16-month low
* Stocks weaker despite corporate activity
* Japan's Tankan points to supply chain problems
By Jeremy Gaunt, European Investment Correspondent
LONDON, April 14 (Reuters) - The dollar sank to a 16-month low against a basket of currencies on Thursday as investors bet U.S. monetary policy would continue to be loose, while a report that Chinese inflation will rise dragged on equities.
World stocks .MIWD00000PUS were flat to lower despite a burst of corporate activity that would usually lift investors' spirits.
Glencore [GLEN.UL], the world's largest commodities trading company, plans to raise up to $12.1 billion in a London and Hong Kong stock market floatation that is London's biggest ever. Shares in Japan's Isuzu Motors (7202.T) jumped on a report that Volkswagen (VOWG.DE) was considering buying all or part of it.
But European shares, as measured by the FTSEurofirst 300 .FTEU3 were down a half a percent, partly out of concern that Chinese inflation is returning.
Hong Kong's Phoenix TV, citing an unnamed source, said China's annual rate of inflation in March was likely to be 5.3-5.4 percent, a 32-month high and just above an estimate in a Reuters poll. [ID:nL3E7FE0EO]
Investors are particularly concerned about Chinese inflation in case government attempts to restrain it prompt a so-called hard landing for the economy.
"Inflation in emerging economies has become a serious issue, as the impact from high commodity prices is stronger for those countries," said Arnaud Scarpaci, fund manager at Paris-based Agilis Gestion.
Earlier, Nikkei benchmark .N225 closed up 0.1 percent, held back by continued worries about the impact of its earthquake, tsunami and nuclear disasters.
The Reuters Tankan survey of 400 large firms found on Thursday that power shortages caused by the crippled Fukushima nuclear plant had hit nearly 60 percent of local companies, disrupting production and supply chains. [ID:nnLME7DP00Q]
WEAK DOLLAR
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