Oil Zooms To 6-Yr Highs

In the currency markets, the dollar sparked into life in Europe and, having snoozed in tight ranges through the first half of this month, it rallied to a 33-month high against the yen and a four-month high against the mark. The pound rose generally, aided by the rally in share prices and dearer oil.

Dow's surge on Monday propelled bourses the world over to new peaks: from New Zealand to London the markets revealed an euphoria which an analyst said was because US interest rates did not go up. On Monday, the Dow Jones industrial average had ended above 6,000 for the first time.

 

Yesterday, the Financial Times-Stock Exchange index of 100 leading British shares was up 21.4 points at 4,060.1, a record high. The 30-share DAX index in Frankfurt was 34.76 ahead at 2,728.64, also a record. In Paris, the CAC-40 share index was 25.38 higher at 2,169.00, just below the year's high of 2,170 hit earlier.

In Mumbai, shares were a tad higher with the benchmark 30-share Sensex closing 19.61 points higher at 3,118.95. The day's high was 3,133.54.

Elsewhere in Asia, the US bullishness spilled over to Hong Kong, where the Hang Seng index recorded its third closing high in less than a week. The Hang Seng closed the session at a record 12,490.70, up 160.35 points or 1.30 per cent. In Tokyo, the benchmark Nikkei 225 jumped 400.68 points or 1.91 per cent to close at 21,429.93. A Dow-inspired Australian share market ended at its second-straight record close.

In the oil market, crude oil futures on the New York Mercantile Exchange (NYMEX) rose to their highest level since the Gulf War because of continued unrest in Iraq and fears of tight heating oil supplies heading into winter, traders said.Crude oil for November delivery jumped to $25.72 a barrel on the exchange, up 10 cents from Mondays close.