10:05 PM
NEW YORK |
NEW YORK (Reuters) - Global stocks rose on Friday as traders took on riskier investments following a Libya ceasefire that reduced tension in the region, and after several central banks intervened to stabilize the yen.
Trading capped a week of extreme volatility marked by Wall Street's gauge of anxiety, the VIX, which on Thursday soared to its highest level since July. Stock market volumes surged on down days and fell on up days.
Although Wall Street finished Friday's session higher, all three major U.S. stock indexes ended the week in the red. The benchmark S&P 500 lost 1.9 percent, its biggest weekly decline since November.
World shares as measured by the MSCI .MIWD00000PUS advanced 0.6 percent. That gain helped the index erase some of its 5.6 percent drop over the past six trading days and brought the index near even for 2011.
Oil fell from earlier highs after Libya declared a ceasefire in the country to protect civilians and comply with a United Nations resolution passed overnight. It had surged after the U.N. Security Council endorsed a no-fly zone for Libya, and authorized "all necessary measures" to protect civilians against Gaddafi's forces.
"That (Mideast unrest) quieting down and Japan quieting down will lead to buying," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.
Brent crude had jumped above $117 a barrel on worries of escalating unrest in oil-rich countries after the U.N. action to contain Libya's Muammar Gaddafi.
Brent for May delivery dropped to around $114 after the ceasefire was declared; the contract settled at $113.93 a barrel, down 97 cents. U.S. crude fell 35 cents to end at $101.07 a barrel.
The dollar climbed 2.6 percent to 80.86 yen, retreating from a session high of around 82 yen, following the G7 announcement to intervene to stop the currency's sharp rise in recent days.
The show of solidarity by the G7 major developed economies to support Japan through its biggest crisis since World War Two comes a day after the yen soared to a record 76.25 per dollar in chaotic trading. It is the first coordinated currency intervention by the G7 in a decade.
The G7 "is just helping sentiment, and stocks sensitive to risk will push on. But optimism is going to be guarded as there are no firm resolutions surrounding the Japanese nuclear crisis and the Middle East, and anything can happen on the weekend," said Giles Watts, head of equities at City Index in London.
WALL ST BUOYED BY NIKKEI AND BANKS
On Wall Street, stocks held gains but pulled back from session highs due to caution before a long weekend in Japan, where markets will be closed on Monday for a holiday.
Japan's Nikkei share index .N225 climbed 2.7 percent, recouping some of the week's losses as Japan reeled from the aftermath of an earthquake, tsunami and nuclear power plant crisis.
The Dow Jones industrial average .DJI gained 83.93 points, or 0.71 percent, to end at 11,858.52. The Standard & Poor's 500 Index .SPX added 5.49 points, or 0.43 percent, to 1,279.21. The Nasdaq Composite Index .IXIC rose 7.62 points, or 0.29 percent, to close at 2,643.67 -- well off its session high of 2,665.56.
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