Tuesday, March 1, 2011

US stocks sink, oil jumps on Mideast tension

US stocks dropped as oil prices shot up on worries about supply disruptions, fanning concerns about a dampening effect on economic growth.

The Dow Jones industrial average was down 137.25 points, or 1.12 percent, at 12,089.09. The Standard & Poor's 500 Index was down 17.91 points, or 1.35 percent, at 1,309.31. The Nasdaq Composite Index was down 41.67 points, or 1.50 percent, at 2,740.60.

European stocks fell after fresh jitters over political turmoil in the Middle East and North Africa prompted some investors to cash in a portion of recent lofty gains on banking and energy stocks.

The FTSEurofirst 300 index of top European shares ended 0.6 percent lower at 1,161.92 points, resuming last week's pull-back that was triggered by escalating violence in OPEC member Libya.

Meanwhile, Japan's Nikkei average clawed back towards 10-month highs to add 1.2 percent as foreign investors piled into Japanese stocks on a lower inflation risk, with more hard-won gains seen in the medium term.

The benchmark Nikkei ended the day up 129.94 points at 10,754.03.