Egypt Protests Send Oil Prices Rising
Bloomberg reports:
Stocks worldwide plunged the most since November, crude oil jumped and the dollar gained against the euro after protests in Egypt intensified and President Hosni Mubarak imposed a nationwide curfew. Egypt’s dollar bonds sank, pushing yields to a record high.
The MSCI World All-Country World Index of stocks in 45 countries lost 1.3 percent at 12:23 p.m. New York time. The Dow Jones Industrial Average fell 1.2 percent to 11,847.39, putting its longest weekly winning streak since 1995 in jeopardy. Oil futures increased 4.2 percent to $89.26. The dollar appreciated 0.9 percent to $1.3608. Yields on Egypt bonds due in 2020 surged 22 basis points to 6.51 percent and rose 86 points this week, the most since they were sold in April.
Mubarak imposed the curfew after a day of clashes between police and protesters demanding the end of his presidency. Tens of thousands of marchers chanted “liberty” and “change” as rallies began today at points across Cairo. Officers fired tear gas to try to prevent them from reaching Tahrir Square and police trucks were hit with rocks. The demonstrations helped offset data showing that growth in U.S. gross domestic product accelerated in the fourth quarter.
“The unrest in Egypt has people concerned,” said Mark Bronzo, who helps manage over $25 billion at Irvington, New York-based Security Global Investors. “When it comes to the Middle East, there’s worries the unrest is going to spread. It has negative implications for the world.”
