GLOBAL MARKETS-Equities, oil prices surge as Suez Canal shutdown continues

(Updates through close of U.S. trading)
By David Randall
NEW YORK, March 26 (Reuters) - Global equity benchmarks and
oil prices jumped on Friday while safe havens such as the dollar
and U.S. Treasuries dipped as hopes for a global economic
recovery overshadowed the continued blockage of one of the
world's most vital shipping lanes.
More than 30 oil tankers are waiting to traverse the Suez
Canal, which has been blocked since Wednesday after a container
ship ran aground. It may take weeks to free the beached vessel,
though analysts said low seasonal demand for oil may mitigate
the impact of the blockade on energy prices. The dollar rose to a nine-month high against the Japanese
yen of 109.44 yen JPY= , reflecting investor expectations of
robust U.S. economic growth as the nation accelerates its
vaccine rollout. Overall, the dollar index =USD , which
measures the greenback against a basket of six major currencies,
fell 0.123%, with the euro EUR= up 0.28% to $1.1797.
"We left 2020 with the validation of the consensus view the
dollar would weaken," said Vincent Manuel, chief investment
officer at Indosuez Wealth Management. "We have woken up in 2021
facing the reality that the U.S. is growing much quicker than
Europe ... so we have a massive divergence."
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 1.44% following broad gains in Europe and Asia.
Business morale in Europe's biggest economy, Germany, is
back to its best in almost two years thanks to recovering global
demand for manufactured goods, data showed on Friday.
On Wall Street, the Dow Jones Industrial Average .DJI rose
453.4 points, or 1.39%, to 33,072.88, the S&P 500 .SPX gained
65.02 points, or 1.66%, to 3,974.54 and the Nasdaq Composite
.IXIC added 161.05 points, or 1.24%, to 13,138.73.
Benchmark 10-year notes US10YT=RR fell 17/32 in price to
yield 1.6724%, from 1.614% late on Thursday.
Weekly money flow data from Bank of America showed global
investors have been darting for safety this week amid concerns
over rising coronavirus cases in Europe and the potential for
global shipping to slow given the blockade of the Suez Canal.
They pumped $45.6 billion into cash funds, the largest since
April 2020, when COVID-19 was spreading quickly.
Turkey's markets were struggling to settle after the lira's
near 10% slump triggered by President Tayyip Erdogan's latest
central bank chief sacking, which has raised worries about a
full-blown crisis that would require capital controls.
EMRG/FRX
Blue chip Chinese stocks .CSI300 rebounded more than 2%
after a three-day losing streak, which, like emerging market
shares generally .MSCIEF , had left them at the lowest level of
the year.
"All the sanctions (on China) so far have been largely
symbolic and should have little economic impact. But the
Sino-U.S. confrontation is affecting market sentiment. It could
take some time for them to come to any compromise," said
Yasutada Suzuki, head of emerging market investment at Sumitomo
Mitsui Bank.
U.S. crude CLc1 rose 3.89% to $60.84 per barrel and Brent
LCOc1 was at $64.45, up 4.04% on the day.
Spot gold XAU= added 0.3% to $1,731.89 an ounce.

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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
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