World Markets Rally on Deals, Libya Strikes Drive Oil Higher

Bikram Pandey
21 Mar, 2011
New York City

U.S. stocks extended world markets gains and crude oil prices rebounded as much as 2%. Allied forces led by UK and France conducted bombing strikes in Libya and international criticism mounted. AT&T deal with T-Mobile may face substantial regulatory hurdles.

[R]4:10 PM New York – U.S. stocks extended world markets gains and crude oil prices rebounded as much as 2%. Allied forces led by UK and France conducted bombing strikes in Libya and international criticism mounted. AT&T deal with T-Mobile may face substantial regulatory hurdles.[/R]

U.S. stocks surged after crude oil prices gained and markets in Europe and Asia advanced.

AT&T gained after it agreed to acquire T-Mobile USA for $39 billion and Charles Schwab offered $1 billion for online options trading firm. SunTrust and KyeCorp raised $1.67 billion to repay TARP funds.

U.S. existing home sales rate declined 9.6% to 4.88 million in February and the median home price fell 5.2% to $156,100. Inventory of unsold homes increased to 8.6-month supply.

European markets surged after Japan nuclear meltdown fears receded and France and UK led a military strike in Libya. Wireless carriers in Europe were on the upswing after Deutsche Telekom agreed to sell its U.S. unit for $39 billion. Insurance stocks increased after Swiss Re estimated $1.2 billion of losses linked to Japan quake.

UK stocks soared tracking the gains in the European markets. Crude oil increased 2% after UK and France bombed Libya and the opposition from the Arab League and African Union mounted.

Regus soared more than 15% after it estimated higher income in the current year. Jupiter Fund Management said its annual net soared six-fold.

Stocks in Hong Kong and Shanghai increased after investors shrugged off the latest bank reserve tightening. China energy stocks gained after crude oil prices increased. Kweichow Moutai Co, China’s largest liquor maker said 2010 net rose 17%.

Stocks in Mumbai traded sideways after crude oil prices gain stoked the worries of higher inflation and prompted more analysts to talk of a market correction of further 5%. Mahindra & Mahindra completed the purchase of a stake in Korean engine maker. Power Finance Corp approved the offering to raise $800 million.

Australian stocks traded higher as resource stocks gained and Japan cited more progress in containing a nuclear reactor. Crude oil prices surged after UK and France led an attack on Libya that killed as many as 150 civilians. Lundin Mining asked shareholders to reject hostile offer from Equinox Mining.

Commodities, Bonds and Currencies

Yield on 10-year bond increased to 3.30% and on 30-year bond gained to 4.44%.

The U.S. dollar decreased to $1.42 to a euro and fell against the Japanese yen to 80.95 yen.

Immediate delivery futures of Texas crude oil increased $1.05 to $102.12 a barrel, of natural gas decreased 0.01 cents to $4.15 per mbtu and gasoline prices increased 4.72 cents to 299.69 cents a gallon.

In metals trading, copper prices decreased 5.80 cents to $4.28 per pound, gold increased $12.30 to $1,428.40 per ounce and silver increased $0.92 to $35.98.