DAVID HAFFENREFFER, CNN ANCHOR: After a bit of a pullback here in the U.S. markets yesterday, we are seeing some strength for the European markets on this Tuesday morning. Todd Benjamin is standing by in our London bureau. Hi, Todd.</s>TODD BENJAMIN, CNN CORRESPONDENT: Hi, Dave. You know, they started off faltering with the exception of the Dax, and now they're all in the plus column, and they've been that way most of the day. London is up about a third of a percent. The Dax is up 1 1/2 percent. What's helping the Dax, and actually the continental markets this morning, is that the biggest union in Germany, IG Metall, it reached a regional pay settlement that was sharply lower than the original demands. It's around 3 percent in the first year, and they had been demanding 5 1/2 percent. And why this is significant, the European Central Bank has been keeping a very close watch on these wage development because they were afraid if IG Metall got too big a settlement that it could be inflationary and then that that would probably mean even higher interest rates, so now the markets are breathing some relief. The Dax, as I said, is up 1 1/2 percent. Paris is up even by more, 1.7 percent. And Zurich is the odd one out right now -- or rather it is also in the plus column. It is up a half percent. In the currency markets today, the dollar is about a third of a yen lower against the Japanese currency. The euro is slightly weaker against the greenback, and the pound is also weaker against the dollar this morning. And, of course, I do want to mention oil. As OPEC meets for the second day, it is up 23 cents today at $25.91 a barrel. Back to you in New York.</s>HAFFENREFFER: That rise in oil prices -- we -- the rise in oil prices this morning comes after a decline yesterday in New York, where we saw crude oil in New York drop by 23 cents to finish out at $27.79 per barrel. Search CNN.com CNNSI.com CNNmoney.com The Web
Pay Settlement With German Union Drives European Markets Higher