NEW YORK: Global stocks rose on Monday, Jan 31 on strong U.S. earnings while Europe's oil benchmark hit $101 a barrel on concerns that unrest in Egypt could spread to Middle Eastern crude producing countries.
The euro advanced, recovering from Friday's weakness, helped by concerns economic growth and inflation in Europe might mean the region increases interest rates more quickly than the United States. U.S. government debt prices slipped back as investors turned to riskier assets.
Europe's benchmark Brent crude oil surged above $100 a barrel for the first time in 28 months on concerns that the political upheaval in Egypt could spread through to other parts of the Middle East, possibly disrupting oil shipments through the Suez Canal.
Gold prices fell, notching the first monthly decline in six months, as the improving tone of some key U.S. economic data reduced the need for a safe haven.
A report showed a measure of factory activity in the U.S. Midwest rising to a 22-1/2 year high in January on strong orders and employment prospects. Another showed U.S. consumer spending ended 2010 on a firmer footing, a trend that economists expected to continue as the labor market recovery gains traction.
Meanwhile the Federal Reserve's preferred measure of consumer inflation - the personal consumption expenditures price index, excluding food and energy - was unchanged in December.
Seeing better-than-expected U.S. economic data, strong earnings reports and increased mergers and acquisitions activity, investors took a more sanguine view of events in Egypt and bought risky assets.
The Dow Jones industrial average <.DJI> closed up 68.23 points, or 0.58 percent, at 11,891.93. The Standard & Poor's 500 Index <.SPX> gained 9.78 points, or 0.77 percent, at 1,286.12. The Nasdaq Composite Index <.IXIC> rose 13.19 points, or 0.49 percent, at 2,700.08.
The Market Vectors Egypt Index ETF rose 6.3 percent.
"It's creating a great opportunity to step up and increase exposure to emerging markets and other areas of the international markets," said Robert Lutts, president and chief investment officer at Cabot Money Management in Salem, Massachusetts. "I'm optimistic that this will be resolved and blow over."
U.S. stocks were also supported after Exxon Mobil Corp, the world's largest publicly traded oil company reported a higher-than-expected 53 percent increase in quarterly profit.
The front month futures contract for the Nikkei 225 stock index <0#NK:> trading in Chicago rose 20 points to 10,255.
The MSCI world equity index <.MIWD00000PUS> rose 0.26 percent while emerging stocks <.MSCIEF>fell 0.55 percent, pressured by Egypt's unrest.
The pan-European FTSEurofirst 300 index <.FTEU3> rebounded from three-week lows to end flat.
In currencies, the euro was supported by purchases made by Asian central banks and Middle East accounts, while nervousness surrounding the political crisis in Egypt is calming down "as far as the currency market is concerned," said Brad Bechtel, managing director of Faros Trading, managing director at FX advisory and execution firm Faros Trading in Stamford, Connecticut.
The dollar fell against a basket of currencies, with the U.S. Dollar Index <.DXY> down 0.44 percent at 77.788, while the euro rose 0.51 percent at $1.3684, and some traders expecting a move toward $1.40 in the weeks ahead. Against the Japanese yen, the dollar eased 0.02 percent at 82.08.
Egypt's stock exchange was closed on Monday and planned to remained closed Tuesday when a million people are expected to take to the street to push President Hosni Mubarak out altogether.
President Mubarak on Monday offered talks on sweeping reforms with opponents, indicating that massive pressure from street protesters, Western allies and his own army are ending his 30 years of one-man rule.
Ratings agency Moody's added to Cairo's financial woes by downgrading the country's debt rating on concern the Mubarak regime may spend more to placate protesters.
Among commodities, benchmark Brent crude hit $101 a barrel, first time since September 2008, while benchmark U.S. crude futures settled up 3.19 percent at $89.34 a barrel on concern that the unrest in Egypt could spread and also on expected cold weather in the U.S. and strong economic data.
Spot gold prices fell 0.6 percent, to $1330.65 an ounce.
Copper, used in power and CONSTRUCTION [], hit a new record high in London at $9,782 per tonne in after-hours trade, and copper for March delivery surged 2 percent, to settle at $4.4585 per lb on the New York Mercantile Exchange, just 4 cents away from its own record high.
Tin hit a record high of $30,240 a tonne on worries about supplies from top exporter Indonesia.
U.S. Treasuries, seen as a safe-haven during uncertain times, softened on better-than-expected economic data boosting confidence that the U.S. economy is on track to recover.
The benchmark 10-year U.S. Treasury note was down 15/32, with the yield at 3.3861 percent. The 2-year U.S. Treasury note was down 2/32, with the yield at 0.5698 percent. The 30-year U.S. Treasury bond was down 25/32, with the yield at 4.5862 percent. - Reuters
The euro advanced, recovering from Friday's weakness, helped by concerns economic growth and inflation in Europe might mean the region increases interest rates more quickly than the United States. U.S. government debt prices slipped back as investors turned to riskier assets.
Europe's benchmark Brent crude oil surged above $100 a barrel for the first time in 28 months on concerns that the political upheaval in Egypt could spread through to other parts of the Middle East, possibly disrupting oil shipments through the Suez Canal.
Gold prices fell, notching the first monthly decline in six months, as the improving tone of some key U.S. economic data reduced the need for a safe haven.
A report showed a measure of factory activity in the U.S. Midwest rising to a 22-1/2 year high in January on strong orders and employment prospects. Another showed U.S. consumer spending ended 2010 on a firmer footing, a trend that economists expected to continue as the labor market recovery gains traction.
Meanwhile the Federal Reserve's preferred measure of consumer inflation - the personal consumption expenditures price index, excluding food and energy - was unchanged in December.
Seeing better-than-expected U.S. economic data, strong earnings reports and increased mergers and acquisitions activity, investors took a more sanguine view of events in Egypt and bought risky assets.
The Dow Jones industrial average <.DJI> closed up 68.23 points, or 0.58 percent, at 11,891.93. The Standard & Poor's 500 Index <.SPX> gained 9.78 points, or 0.77 percent, at 1,286.12. The Nasdaq Composite Index <.IXIC> rose 13.19 points, or 0.49 percent, at 2,700.08.
The Market Vectors Egypt Index ETF
"It's creating a great opportunity to step up and increase exposure to emerging markets and other areas of the international markets," said Robert Lutts, president and chief investment officer at Cabot Money Management in Salem, Massachusetts. "I'm optimistic that this will be resolved and blow over."
U.S. stocks were also supported after Exxon Mobil Corp
The front month futures contract for the Nikkei 225 stock index <0#NK:> trading in Chicago rose 20 points to 10,255.
The MSCI world equity index <.MIWD00000PUS> rose 0.26 percent while emerging stocks <.MSCIEF>fell 0.55 percent, pressured by Egypt's unrest.
The pan-European FTSEurofirst 300 index <.FTEU3> rebounded from three-week lows to end flat.
In currencies, the euro was supported by purchases made by Asian central banks and Middle East accounts, while nervousness surrounding the political crisis in Egypt is calming down "as far as the currency market is concerned," said Brad Bechtel, managing director of Faros Trading, managing director at FX advisory and execution firm Faros Trading in Stamford, Connecticut.
The dollar fell against a basket of currencies, with the U.S. Dollar Index <.DXY> down 0.44 percent at 77.788, while the euro
Egypt's stock exchange was closed on Monday and planned to remained closed Tuesday when a million people are expected to take to the street to push President Hosni Mubarak out altogether.
President Mubarak on Monday offered talks on sweeping reforms with opponents, indicating that massive pressure from street protesters, Western allies and his own army are ending his 30 years of one-man rule.
Ratings agency Moody's added to Cairo's financial woes by downgrading the country's debt rating on concern the Mubarak regime may spend more to placate protesters.
Among commodities, benchmark Brent crude
Spot gold prices
Copper
Tin
U.S. Treasuries, seen as a safe-haven during uncertain times, softened on better-than-expected economic data boosting confidence that the U.S. economy is on track to recover.
The benchmark 10-year U.S. Treasury note
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