Stocks slide, oil prices jump after Yemen air strikes

Thu Mar 26, 2015 6:46pm EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Michael Connor

NEW YORK (Reuters) - Oil prices jumped 5 percent and stock markets worldwide slumped on Thursday after Saudi Arabia and allies carried out air strikes in Yemen, which fueled worries in the Middle East that energy shipments may be put at risk.

Wall Street steadied in late trading, narrowing losses that had been as much as 1 percent to close just modestly lower with support from economic data and corporate earnings reports.

"The air strikes in Yemen have really created a risk-off mood," said Rabobank strategist Philip Marey.

Brent oil LCOc1 closed up nearly 5 percent at $59.19 a barrel, but off a session high of $59.78. U.S. crude CLc1 closed up 4.5 percent at $51.43 a barrel after reaching $52.48.

The MSCI world equity index .MIWD00000PUS, which tracks shares in 45 countries, was last off 0.80 percent.

In currency markets, the dollar fell against traditional safe havens the Swiss franc and the yen after warplanes from Saudi Arabia and other Arab countries struck Shi'ite Muslim rebels fighting to oust Yemen's president.

The dollar later recovered against the franc CHF= and was last up 0.4 percent at 0.9633 francs. Against the yen, the dollar was last at 119.26 yen JPY=, off 0.18 percent.

The dollar was down earlier against the euro EUR=RR but recovered in New York trading on the view that central bank policy was more favorable for the U.S. currency. The euro was last off 0.80 percent at $1.0884.   Continued...

 
Specialist trader Peter Giacchi (R) gives a price just before the opening bell on the floor of the New York Stock Exchange March 26, 2015. REUTERS/Brendan McDermid