MORNING BID EUROPE-Markets look past German uncertainty to focus on boom

* A look at the day ahead from EMEA markets editor Mike Dolan. The views expressed are his own.

LONDON, Nov 21 (Reuters) - For the umpteenth time this year, global markets have batted away a sizeable political uncertainty – this time Germany’s extraordinary government hiatus and risk of new elections – to focus squarely instead on the underlying economic boom and persistently easy money environment. Euro/dollar is about the only net move since Friday, down about half a cent over that period, but well within recent ranges, firmer this morning and on balance a boon to corporate Germany in itself. Germany’s blue-chip DAX index recovered all its early losses on Monday to end about 0.5 percent higher. German bund yields popped back higher after a early dip too and any thought of a euro-risk premium reversed, with French-German 10-year spreads falling to their lowest level in eight years early on Tuesday. Is the market deliberately ignoring the political risks? Yet again, the argument is that Germany will find some solution without disturbing the momentum of the underlying economy and it’s impossible to ignore the synchronized global economic expansion in the meantime. Underlining that, U.S. economic surprise indexes pushed to their highest level in almost 4 years on Monday. Wall St pushed higher again overnight, with volatility gauges ebbing after last week’s shakeup. Asia bourse advanced too, with MSCI World now up for the fourth session in a row.

The notable exception to the buoyant mood globally is Turkey’s lira, whose slide against the dollar is accelerating and dollar/lira is now up more than 17 percent since mid-September. The lira slide comes despite and in tandem with soaring local borrowing rates, where 1 year Turkish yields are up almost 200 basis points over the past two months to 13.55 percent. The latest losses are ostensibly driven by concerns about Ankara's strained relations with the United States, inflation risks and monetary policy uncertainty. Worries about U.S. ties centre around the trial of Turkish gold trader Reza Zarrab, accused of violating U.S. sanctions on Iran, a case which the Turkish government spokesman on Monday described as a "clear plot against Turkey" that lacks any legal basis. Traders are also concerned about the outlook for monetary policy after President Erdogan last week said a lack of government intervention in monetary policy had left Turkey saddled with high inflation.

Going in the opposite direction, meantime, is the seemingly unstoppable bitcoin – which soared over $8000on Monday for the first time -- marking a climb of almost 50 percent in just 8 days. CME Group (Kuala Lumpur: 7018.KL - news) , the world's biggest futures exchange, said on Monday it still plans to launch a futures contract for bitcoin this year, but that a notice on its website stating the contract would begin trading on Dec (Shanghai: 600875.SS - news) . 11 was posted in error. * Europe corp events: Babcock, Compass group (Other OTC: CMPGF - news) , Easyjet (Frankfurt: A1JTC1 - news) , Johnson Mathey, Sage Group (LSE: SGE.L - news) , EasyJet, CRH (EUREX: 558474.EX - news) trading statement

* Spain Sept trade, Swiss Oct trade

* UK Nov CBI orders, govt borrowing data

* UK auctions 2026 gilts

* BoE (Shenzhen: 000725.SZ - news) deputy governor Cunliffe and BoE policymakers Vlieghe, Saunders and McCafferty testify to parliament

* Belgium Nov consumer confidence

* Nigeria, Hungary central bank policy decisions

* US Nov existing home sales

* Argentina central bank policy statement

* US Treasury auctions 2-year FRNs (Editing by Alison Williams)