GLOBAL MARKETS-Stocks rebound, safe-haven assets ease after Brussels attacks

Published 23/03/2016, 04:49 am
© Reuters.  GLOBAL MARKETS-Stocks rebound, safe-haven assets ease after Brussels attacks
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* Equities recover from early losses

* Travel sector stocks weak after attacks

* Gold, yen and Treasury bonds strength eases (Adds close of European markets)

By Chuck Mikolajczak

NEW York, March 22 (Reuters) - Global equity markets reversed losses while safe-haven gold and government bonds pulled back from higher levels on Tuesday in the wake of attacks on the airport and a rush-hour metro train in Brussels.

Islamic State claimed responsibility for suicide bomb attacks in the Belgian capital that killed at least 30 people. sector stocks, including airlines and hotels, were among the hardest-hit, although equities managed to recover from sharp losses and bonds and gold eased from their early highs.

On Wall Street, the NYSEArca airline index .XAL lost 0.4 percent and was on track for its first decline in five sessions. Cruise ship operators Royal Caribbean RCL.N , down 3 percent and Carnival Corp (NYSE:CCL) CCL.N , down 2.5 percent, were among the worst performers on the S&P 500.

Those declines were offset by gains in Apple AAPL.O , up 0.7 percent to $106.62 and a 1 percent gain in the healthcare .SPXHC sector.

"Slowly but surely that whole move has abated and stocks are now on the plus side. I am quite surprised by this," said Stephen Guilfoyle, managing director of floor operations at Deep Value Execution Services in New York.

"You don't have a selloff in equities when there is a catalyst, a prominent catalyst, a good reason to make a sale if you were thinking of taking money off the table. This has to be considered bullish."

The Dow Jones industrial average .DJI rose 13.11 points, or 0.07 percent, to 17,636.98, the S&P 500 .SPX gained 3.72 points, or 0.18 percent, to 2,055.32 and the Nasdaq Composite .IXIC added 21.25 points, or 0.44 percent, to 4,830.13.

The FTSEuroFirst 300 index .FTEU3 of leading shares closed down 0.12 percent at 1,338.20, rebounding from a 1.6 percent drop. Belgian stocks .BEL20 rose 0.17 percent after having been down as much as 1.4 percent. MSCI's index of world shares .MIWD00000PUS edged up 0.13 percent.

In Europe, the STOXX Europe 600 Travel & Leisure index .SXTP was down 1.8 percent. Shares in major European airlines like Ryanair RYA.I and Air France-KLM AIRF.PA also fell. XAU= was up 0.38 percent at $1,248.10 an ounce after hitting a high of $1.259.60 earlier. U.S. 10-year notes US10YT=RR were last up 4/32 in price to yield 1.9085 percent, down from 1.921 percent on Monday. The yields earlier fell as low as 1.879 percent. currency markets the Japanese yen, regarded by investors as a shelter from turbulence, pulled back from early gains, notably against the euro. The euro was last up 0.08 percent at 125.93 yen EURJPY= and the dollar turned positive, up 0.29 percent at 112.26 yen JPY= .

The euro EUR= fell 0.2 percent against the dollar to $1.1217. The dollar .DXY was up 0.37 percent to 95.638 against a basket of major currencies. is expected to continue to lessen ahead of the Easter holiday and investors were beginning to think about cashing in on a steep rally in stocks over the last few weeks.

Oil prices also steadied after the initial rush to safer assets, with U.S. crude CLc1 futures off 0.24 percent to $41.42 a barrel while Brent rebounded from a low of $40.97 to trade up 0.43 percent at $41.72. Global assets in 2015

http://link.reuters.com/dub25t Commodities performance

http://link.reuters.com/rac73w Currencies vs dollar

http://link.reuters.com/tak27s

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