Global stock market rally falters

LONDON — A global stock market rally faltered on Tuesday as European stocks fell on profit-taking, despite Tokyo striking a 10-month high on global economic optimism and company earnings news.

Japanese shares gained 0.22 percent to reach the multi-month pinnacle after Wall Street had also soared to a 2009 record on a wave of investor enthusiasm over the global economic outlook.

But Europe's main equity markets fell into the red in Tuesday morning deals after striking their highest points so far this year on Monday.

"There has been some profit-taking, but the main trend is still positive so this could be the market taking a breather," said ETX Capital trader Manoj Ladwa.

Frankfurt sank 0.86 percent, London dropped 0.78 percent and Paris dived 0.69 percent. All three had each gained about 1.5 percent in value the previous day on a wave of investor enthusiasm.

"Continued talk of economic recovery and the plethora of better than expected economic readings are showing that at worst we are nearing the bottom of this recession," added CMC Markets analyst James Hughes.

"Many are of the opinion that the turnaround is well underway and one thing that will show us that will be the (US) jobs report on Friday."