World markets steadied on Friday after a volatile
week driven by speculation over shifts in U.S. monetary policy, with equities
around the globe on the rise and the euro up against the dollar, while crude
oil rose on fear of supply disruptions over the situation in Crimea. The S&P 500 index
hit a record intra-day high Friday as equities were boosted Russia stating that
no other regions would be subject to intervention.
But Brent crude rose
more than 1 percent to above $107 a barrel as U.S. sanctions against Russia,
the world's second-largest oil exporter, kept fears of a supply disruption
alive. Brent crude remained on track for a fourth weekly loss, however, and
President Vladimir Putin signed laws completing Russia's annexation of Crimea
on Friday.
European shares
logged their biggest weekly gain in a month, supported by a rally in basic
resources stocks and some positive technical buying signals.
The European basic
resources index .SXPP rose 1.1 percent, extending gains on expectations China
would support its economy after Premier Li Keqiang said on Thursday the world's
top metals consumer will speed up investment and construction plans to ensure
domestic demand expands at a stable rate.
Early strength in
Europe helped MSCI's all-country world equity index trade up 0.33 percent. The
euro zone's blue-chip Euro STOXX 50 index rose 0.25 percent after a major
options expiry, and the pan-regional FTSEurofirst 300 closed up 0.28 percent at
1,309.56.
Both the S&P 500
and the Dow were on track for a fourth day of gains this week, even though some
analysts say equities are vulnerable to any escalation in U.S.-Russian
tensions.
Speeches from U.S.
Federal Reserve officials later in the day will be parsed for clues to the pace
of U.S. tightening and could drive fresh market moves.
New Fed Chair Janet
Yellen surprised investors mid-week by hinting interest rates might rise
earlier than expected, while U.S. economic data on Thursday was mixed.
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