Citi Relief Boosts Shares; Oil Prices Touch $42
LONDON World stocks rose from last week’s three-month lows and government bonds fell on Monday as expectations grew that the US government will increase its stake in Citigroup, instead of fully nationalising it.
The low-yielding yen was the biggest loser in the currency market as global stocks rose and after the failure of domestic moneylender SFCG added concerns about the world’s second largest economy which is mired in recession.
A source said that Citigroup is in talks that could result in the US government increasing its stake in the bank.
The Wall Street Journal said the government could own as much as 40 per cent of the bank’s common equity by converting preferred shares it holds into common stocks.
The news calmed fears over the bank’s future and the prospect of a full nationalisation of the stricken lender, which not only depresses stocks but adds to the fiscal burden of the biggest world economy.
Oil prices crept higher on Monday after Opec member Algeria hinted that the cartel could cut output next month.
Brent North Sea crude for April delivery added 37 cents to $42.26 per barrel.
New York’s main futures contract, light sweet crude for delivery in April, added 25 cents to $40.28 per barrel.
“Crude prices were higher amid hopes of further supply cuts from Opec in March,” said Sucden Financial analyst Nimit Khamar.
Algeria’s minister for energy and mines said on Sunday that Opec would probably decide on more cutbacks in output in a bid to prevent further price drops, Algeria’s APS news agency reported.
The dollar ticked lower against a basket of major currencies while the euro fell to $1.2827.
The yen hit a three-month low of $94.94, bringing its losses this month to around 5 per cent.
Shares in Britain’s partly-nationalised Royal Bank of Scotland jumped nearly 20 per cent as it is expected to announce a restructuring to create a non-core division into which unwanted assets will be placed.
MSCI world equity index rose 0.7 per cent after hitting its lowest since late November on Friday while the FTSEurofirst 300 index of leading European shares gained 0.4 per cent.
US stock futures were up around 1 per cent, pointing to a firmer open on Wall Street later. Citi shares rose more than 12 per cent in pre-market trade.
The low-yielding yen was the biggest loser in the currency market as global stocks rose and after the failure of domestic moneylender SFCG added concerns about the world’s second largest economy which is mired in recession.
A source said that Citigroup is in talks that could result in the US government increasing its stake in the bank.
The Wall Street Journal said the government could own as much as 40 per cent of the bank’s common equity by converting preferred shares it holds into common stocks.
The news calmed fears over the bank’s future and the prospect of a full nationalisation of the stricken lender, which not only depresses stocks but adds to the fiscal burden of the biggest world economy.
Oil prices crept higher on Monday after Opec member Algeria hinted that the cartel could cut output next month.
Brent North Sea crude for April delivery added 37 cents to $42.26 per barrel.
New York’s main futures contract, light sweet crude for delivery in April, added 25 cents to $40.28 per barrel.
“Crude prices were higher amid hopes of further supply cuts from Opec in March,” said Sucden Financial analyst Nimit Khamar.
Algeria’s minister for energy and mines said on Sunday that Opec would probably decide on more cutbacks in output in a bid to prevent further price drops, Algeria’s APS news agency reported.
The dollar ticked lower against a basket of major currencies while the euro fell to $1.2827.
The yen hit a three-month low of $94.94, bringing its losses this month to around 5 per cent.
Shares in Britain’s partly-nationalised Royal Bank of Scotland jumped nearly 20 per cent as it is expected to announce a restructuring to create a non-core division into which unwanted assets will be placed.
MSCI world equity index rose 0.7 per cent after hitting its lowest since late November on Friday while the FTSEurofirst 300 index of leading European shares gained 0.4 per cent.
US stock futures were up around 1 per cent, pointing to a firmer open on Wall Street later. Citi shares rose more than 12 per cent in pre-market trade.
source: www.omantribune.com
