Breaking News

GLOBAL MARKETS-Stocks rise, US dollar falls; oil inches down

ForexFeb 28, 2011 10:08AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

* World stocks up 0.6 pct, set for 3rd monthly rise

* U.S. stocks open higher after Bullard comments

* US dollar falls; Brent crude oil inches lower

(Adds opening of U.S markets, changes byline, dateline, previous LONDON)

By Caroline Valetkevitch

NEW YORK, Feb 28 (Reuters) - Major stocksmarkets rose on Monday, with worries about the effect of high energy prices on U.S. economic growth easing slightly, while the dollar hit a 3-1/2-month low against a basket of major currencies.

World equities measured by MSCI All-Country World Index <.MIWD00000PUS> added 0.6 percent after rising 1.1 percent on Friday. The global index is up 2.3 percent this month, on track for a third straight monthly rise.

Comments by James Bullard, president of the St. Louis Federal Reserve, that the U.S. economy should do well in 2011 and that oil prices are not currently a drag on the recovery helped to boost U.S. stocks.

"Bullard was right that oil prices won't put a crimp in activity unless they get substantially higher," said Malcolm Polley, president of Stewart Capital Advisors in Indiana, Pennsylvania. "But if gas prices remain at a sustained level, that will eat into people's discretionary dollars."

Just after the open, the Dow Jones industrial average <.DJI> was up 62.44 points, or 0.51 percent, at 12,192.89. The Standard & Poor's 500 Index <.SPX> was up 6.99 points, or 0.53 percent, at 1,326.87. The Nasdaq Composite Index <.IXIC> was up 16.27 points, or 0.59 percent, at 2,797.32.

Brent crude oil prices inched lower. Worries over supply disruption from the Middle East and North Africa caused prices to spike last week. Brent crude was down 0.03 percent at $112.11.

Revolt in Libya has cut as much as three quarters of the country's oil output, prompting Saudi Arabia to step in and plug the supply gap to Libya's oil buyers.

Brent crude is up more than 10 percent this month, heading towards its sixth straight month of rises. It touched a 29-month high of near $120 a barrel last week.

The U.S. dollar hit a 3-1/2-month low versus a currency basket as investors speculated the Fed will lag other central banks in raising interest rates to counter inflation risks.

The ICE futures exchange's dollar index <.DXY>, which tracks the greenback's performance against a basket of major currencies, skidded earlier to its lowest level since Nov. 9.

U.S. Treasury prices were little changed after data showed higher-than-forecast Chicago purchasing managers index.

The benchmark 10-year U.S. Treasury note was unchanged with the yield at 3.4161 percent .

U.S. Treasuries earlier were supported by New York Fed President William Dudley's assertion that the Fed was "very far" from achieving its dual mandate of maximum sustainable employment and price stability and should be wary of withdrawing monetary policy support.

In Europe, the pan-European FTSEurofirst 300 <.FTEU3> index of top shares was up 1.1 percent at 1,172, helped by agrochemical stocks after positive comments on the sector from Bayer .

According to fund tracker EPFR Global, a growing aversion to risky assets in the latest week fueled the biggest flows to global bond funds in more three months, and turned more investors away from emerging market stocks. [ID:nN25262438]

The rotation out of emerging markets into developed markets, partly driven by inflation concerns in emerging economies, have led to outperformance in developed markets. The MSCI emerging market index <.MSCIEF> has lost 4.2 percent this year.

But Credit Suisse's private bank expected the fund rotation to ease in the second quarter. (Additional reporting by Ryan Vlastelica and Ellen Freilich in New York; Dominic Lau, Neal Armstrong and Naomi Tajitsu in London; and Florence Tan in Singapore)

GLOBAL MARKETS-Stocks rise, US dollar falls; oil inches down

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email