Oil Lifts Europe

Elena
16 Jan, 2006
Frankfurt

Asian-Pacific markets closed mixed on weak dollar and tech stocks. The biggest decliner was Shanghai Composite, down 1.5%, followed by the Nikkei, down 1.14% to 16,268.03. Markets in South Korea and Taiwan advanced. European averages closed in the positive, supported by oil stocks and mergers and acqusitions. The leading advancer was the German DAX 30, up 0.6%.

INTERNATIONAL MARKETS NEWS

Asian-Pacific benchmarks finished mixed Monday on tech stocks, weakening dollar and cautiousness ahead of busy U.S. earnings week. The Nikkei dropped 1.14% to 16,268.03, Shanghai Composite slid 1.5%, while South Korea’s Kospi added 0.4% and Taiwan’s Weighted index gained 0.6%. The dollar bought 114.57 yen.

European stocks gained ground, supported by oil and mining stocks with more merger-and-acquisition news in focus. Stocks rebounded from early losses and neared 3 ½-year highs. The German DAX 30 climbed 0.6%, the French CAC 40 added 0.1%, and London’s FTSE 100 gained 0.5%.

OIL, METALS, CURRENCIES

Crude oil prices advanced on political tension in Iran and Nigeria, causing supply concerns. With U.S. markets closed for a holiday today, London Brent was in the spotlight. February delivery rose 93 cents to $63.18 a barrel.

Gold prices climbed in European trading to reach 25-year highs. Gold for immediate delivery rose to $561.60 per troy ounce from $556.50. Silver reached an 18 ½-year peak of $9.25 before retreating to $9.20 from $9.10.

The U.S. dollar advanced against major currencies ahead of consumer confidence and manufacturing data. The euro was quoted at $1.2119, down from $1.2142. The dollar bought 114.95 yen, up from 114.18.