3 May 2011

Stocks reverse early gains

8:35 am on 3 May 2011

Stocks in the United States opened higher on Monday after President Barack Obama announced on Sunday night that Osama bin Laden had been killed. Oil and precious metal prices fell.

However, stocks have since pared gains and the Nasdaq has turned negative, pressured by weakness in technology shares.

Analysts say bin Laden's death could reduce security risks and help lift consumer sentiment in the United States, but it will do little to ease the longer-term risks hanging over the US and global economies.

The Dow Jones Index fell 3 points to 12,807 and the Nasdaq Composite fell 9 points to 2864.

In Europe, the FTSE 100 in London was closed for a public holiday. But the CAC-40 in Paris closed up 1.9 points at 4,108.8 and the DAX in Frankfurt closed up 13.2 points at 7,527.6.

Across the Tasman, the Australian 200 Index closed 2 points higher on Monday at 4825.

The NZX 50 fell 21 points, or 0.6%, to 3498.

At 8.20am on Monday, the New Zealand dollar was trading at 80.55 US cents, 73.66 Australian cents, 48.42 pence, 65.47 yen and 0.5437 euro. The Trade Weighted Index was at 68.46.

Brent crude oil was trading at $US127.71 US per barrel. Gold was trading at $US1558.42 per ounce.