* Oil recedes as Saudis boost output to qualm Libya fears
* US dollar trims gain vs euro, slips vs yen on GDP report
* US bonds pare losses after revised U.S. GDP data
(Adds opening of U.S. markets, changes byline, dateline;
previous LONDON)
By Herbert Lash
NEW YORK, Feb 25 (Reuters) - Stocks in major markets
rallied and crude oil prices eased on Friday after Saudi Arabia
boosted oil output to calm fears of supply disruptions sparked
by the uprising in Libya.
The Saudi move to increase oil output by more than 700,000
barrels daily, according to an industry source familiar with
the kingdom's production, offset a bearish U.S. government
report that showed slower than expected fourth-quarter economic
growth. For details on increased Saudi output see:
[]
The U.S. dollar trimmed gains versus the euro and extended
losses against the yen after a second estimate of U.S. gross
domestic product data for the fourth quarter of 2010, while
U.S. Treasury debt prices pared losses and were little changed
in early trade. [] []
U.S. GDP grew at annualized rate of 2.8 percent, less than
an initial 3.2 percent estimate as government spending
contracted more sharply and consumer spending was less robust,
a report from the Commerce Department said.
Events in North Africa and the Middle East still grabbed
the spotlight though after oil prices retreated from 2-1/2 year
peaks of almost $120 a barrel on Thursday to hover around $112
<LCOc1> on Saudi efforts to plug any supply gaps.
[]
ICE Brent crude futures <LCOc1> in London were up 40 cents
at $111.72 a barrel after briefly trading negative on the day.
U.S. light sweet crude oil <CLc1> fell 8 cents to $97.20 a
barrel. Earlier this week Brent prices had spiked to nearly
$120 a barrel and US crude oil had risen over $100 for the
first time in 2-1/2 years.
"The tensions in the Middle East seem to be less at the
forefront of the market's mind. The initial panic seems to have
subsided a bit," said Phil Gillett, a trader at Spreadex.
Wall Street opening higher, in line with higher equity
markets in Europe.
The FTSEurofirst 300 <> index of top European shares
was up 1.0 percent and world equities measured by MSCI's
all-country world index <.MIWD00000PUS> rose 0.8 percent.
The Dow Jones industrial average <> was up 33.11
points, or 0.27 percent, at 12,101.61. The Standard & Poor's
500 Index <.SPX> was up 5.73 points, or 0.44 percent, at
1,311.83. The Nasdaq Composite Index <> was up 16.12
points, or 0.59 percent, at 2,754.02.
Gold rose, supported by interest in the metal as a haven
from risk amid the backdrop of violence in Libya.
The Libyan coastal town of Zawiyah was under the control of
anti-government protesters, a witness said, bringing a popular
uprising against Muammar Gaddafi within 50 kilometers of the
capital Tripoli. []
The euro <EUR=> was down 0.41 percent at $1.3746, and
against the yen, the dollar <JPY=> was down 0.22 percent at
81.73.
The benchmark 10-year U.S. Treasury note <US10YT=RR> was
unchanged in price to yield 3.45 percent.
(Reporting by Gertrude Chavez-Dreyfuss and Chris Reese in New
York; Ikuko Kurahone, Nia Williams, Simon Falush, Emelia
Sithole-Matarise and Jan Harvey in London; Writing by Herbert
Lash)
