Positive news helps gains in US, Europe, Asia

Elaine Frei | March 21, 2011 | 0 Comments

Most equities markets around the world saw gains Monday as aircraft the United States, France and the UK enforced a no-fly zone over Libya, with US officials saying that they now have full control over the North African nation’s airspace in action approved by the United Nations Security Council, which passed a resolution Friday calling for all necessary measures to make Libya safe for civilians.

The only action not approved by the UN was the use of foreign troops on the ground there.

Also helping gains was the news that conditions seem to be getting better at the Fukushima Dai-Ichi nuclear power facility that was damaged by the earthquake and tsunami that struck northern Japan on 11 March, with late reports saying that power has been restored to all six reactors at the plant, raising hopes that workers there will be able to cool down reactor cores a minimize the danger of meltdowns.

European and US markets were cheered by the news that AT&T (NYSE: T) will buy T-Mobile USA from German telecom Deutsche Telekom (FWB: DTE), raising hopes that more mergers and acquisitions are coming soon.

Shortly before the 4 p.m. close on Wall Street, the Dow Jones Industrial Average was up 1.45 percent to 12,030.7 while the S&P 500 had added 1.46 percent to 1,297.92 and the Nasdaq composite was 1.8 percent higher to 2,691.28.

Prices for crude oil and precious metals were up in New York trade, but copper prices were lower.

The FTSE 100 was up 1.19 percent to 5,786.09 in London, while the FTSE 250 added 1.46 percent to 11,511.2, with the telecommunications sector higher, while most miners saw gains, some homebuilders were up on a broker upgrade within the sector, some engineering groups gained and the energy sector was mixed.

Elsewhere in the region, the FTSE Eurofirst 300 was up 1.75 percent to 1,107.89 while the Dax was up 2.28 percent to 6,816.12, the IBEX was 2.38 percent higher to 10,574.4 and the CAC-40 gained 2.47 percent to 3,904.45, with no losers on either the Dax or the CAC-40.

Most markets in the Asia-Pacific region were higher on the better news from Japan and Libya, while the Asian markets responded to the news from Friday that the US Federal Reserve late last week said that some big banks in the United States would be allowed to reinstate dividends.

The Shanghai Composite added 0.08 percent to 2,909.14 in China, while in Australia the S&P/ASX200 was up 0.35 percent to 4,642.8 and the Sydney Ordinaries gained 0.39 percent to 4,734.1, Taiwan’s Taiex was 0.87 percent higher to 8,467.71, the Kospi was up 1.13 percent to 2,003.42 in South Korea, Singapore’s Straits Times Index added 1.63 percent to 2,983.51 and the Hang Seng gained 1.73 percen tto 22,685.2 in Hong Kong.

Tokyo’s markets were closed in observance of the Vernal Equinox, while India’s Senex dropped 0.22 percent to 17,839,1

Tags: Asia-Pacific equities, commodities, European equities, London equities, Wall Street