Oil jumps, bond prices inch up on global tensions

Tue Nov 24, 2015 5:31pm EST
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By Caroline Valetkevitch

NEW YORK (Reuters) - Oil prices jumped and government debt prices edged up on Tuesday as concern about global tensions rose after Turkey shot down a Russian warplane near the Syrian border.

U.S. stocks erased early declines, ending slightly higher as energy shares rose with oil prices.

The dollar fell against the traditionally safe-haven Japanese yen, helping to push gold up.

Travel stocks fell after the U.S. State Department late on Monday warned U.S. citizens of the risk to worldwide travel posed by what it called increased terrorist threats. United Continental (UAL.N: Quote), American Airlines (AAL.O: Quote) and Delta Air Lines (DAL.N: Quote) each fell at least 2 percent.

Investors have been on edge about the risk of more terror incidents following the Nov. 13 attacks in Paris that left at least 130 dead.

The warplane incident was the first time a NATO member's armed forces shot down a Russian or Soviet military aircraft since the 1950s. Russia said its plane was downed over Syria.

Oil prices hit two-week highs, with Brent futures LCOc1 rising 2.9 percent to settle at $46.12 a barrel and U.S. crude CLc1 gaining 2.7 percent to settle at $42.87.

Energy shares contributed the biggest lift to U.S. stocks. The S&P energy index .SPNY ended up 2.2 percent.   Continued...

An offshore oil platform is seen in Huntington Beach, California September 28, 2014. REUTERS/Lucy Nicholson