Turmoil in Egypt roils markets (UPDATED)

Stocks on Wall Street rebounded as investors continued to fret over unrest in Egypt but were buoyed by strong economic news.

US consumers accelerated their spending at the end of 2010, with a 0.7% boost in December, while Americans' incomes rose by 0.4% for a second month in a row. Economists had estimated spending would rise 0.5% and incomes 0.4%.

In Egypt, investors were encouraged to see the Suez Canal was still open despite continued demonstrations aimed at overthrowing the 30-year dictatorship of President Hosni Mubarack.

Brent oil futures in New York rose past the $US100 a barrel, the highest since September 26, 2008, at the height of the global financial crisis.

At the close (10am NZ time), the Dow Jones Industrial Average was up 68.86 points, or 0.6%, to 11,891.86. The measure rose 2.7% for the month, the first January gain in four years and the best January performance in 14 years.

On Friday, the Dow fell the most in months as traders feared a closure of the Suez Canal, though it is still operating normally.

Exxon Mobil led a strong rally in energy stocks, adding 2.1% after fourth-quarter earnings surged 53%, beating analysts' expectations thanks to higher oil prices, improved refining margins and its unconventional gas production operations. Chevron rose 1.7%.

Alcoa topped the Dow stocks with 2.7% gain after agreeing to pay $US240 million for an aerospace fastener business from TransDigm Group.

The Nasdaq Composite was up 0.5% to hit 2700.08 and 1.8% gain for the month. The S&P 500 index surged 0.8% to 1286.12 for a 1.3% gain for the month. Both measures clocked their best January performance since 2007.

Other markets: Europe, Asia down
European markets ended marginally lower as investors remained nervous about the growing unrest in Egypt. Banks, travel companies and car makers posted some of the biggest losses.

The Stoxx Europe 600 index fell 0.1% to end at 280.05 and was up 1.5% for the month.

Bucking the negative trend, France's CAC 40 edged up 0.1% to end at 4,005.50. The German DAX 30 slipped 0.4% to 7077.48 and the UK's FTSE 100 ended down 0.3% to 5862.94.

Asian stock markets fell, hurt by turmoil in Egypt. Japan's Nikkei Stock Average ended down 1.2% at 10,237.92, Indonesia's JSX Composite dropped 2.3% to 3409.17 and Singapore's Straits Times Index fell 1.6% to 3179.72.

The Korean and Thai indexes were both down 1.8%, with the Kospi closing at 2069.73 and the SET ending at 964.10. The Australian S&P/ASX was down 0.4% to 4753.92.

China was the only Asian market to buck the trend, with the Shanghai Composite Index finishing 1.4% higher at 2790.69 on thin trading ahead of the Chinese New Year holiday.

Commodities: Oil up, gold down
Brent crude prices hit $US100 a barrel for the first time in more than two years, with continued turmoil in Egypt pushing the benchmark contract past the key threshold.

Brent crude for March delivery on the ICE futures exchange in New York settled $US1.59, or 1.6%, up at $US101.01 a barrel, the highest price - and first time the contract has seen triple-digit territory - since October 1, 2008.

Meanwhile, light, sweet crude in New York settled $US2.85, or 3.2%, higher at $US92.19 a barrel, the highest since October 3, 2008.

Gold futures pulled back. The April contract, the most active month, settled $US7.20 lower, or 0.5%, at $US1334.50 an ounce in New York.

Currencies: Euro up, dollar down
The euro advanced as investors speculated that rising euro-zone inflation will soon lead to higher interest rates in the 17-nation currency bloc.

Fears over Egypt were temporarily pushed aside after data showed an unexpectedly strong rise in euro-zone consumer price data. Speculation is rife that European Central Bank President Jean-Claude Trichet's recent remarks on inflation are preparing the market for higher interest rates.

The euro pared some of the day's gains but was still up nearly 1% from Friday's close around $US1.37.

The US dollar was modestly lower at ¥82 from ¥82.13 late on Friday, while the euro traded higher on the day around ¥112.34 from ¥111.70.

The pound was at $US1.5900 compared with $US1.5861 late on Friday. The dollar traded at 0.9407 Swiss franc from 0.9419 franc.