* Stocks rise on strong earnings and M&A, US economic data
* Brent oil hits $101 on supply worries, Egypt crisis
* Commodities rise, Copper, Tin hit record highs
* Euro rises on higher interest rate concerns
(Updates with U.S. markets close, prices, comment, Nikkei
futures)
By Manuela Badawy
NEW YORK, Jan 31 (Reuters) - Global stocks rose on Monday
on strong U.S. earnings while Europe's oil benchmark hit $101 a
barrel on concerns that unrest in Egypt could spread to Middle
Eastern crude producing countries.
The euro advanced, recovering from Friday's weakness,
helped by concerns economic growth and inflation in Europe
might mean the region increases interest rates more quickly
than the United States. U.S. government debt prices slipped
back as investors turned to riskier assets.
Europe's benchmark Brent crude oil surged above $100 a
barrel for the first time in 28 months on concerns that the
political upheaval in Egypt could spread through to other parts
of the Middle East, possibly disrupting oil shipments through
the Suez Canal.
Gold prices fell, notching the first monthly decline in six
months, as the improving tone of some key U.S. economic data
reduced the need for a safe haven.
A report showed a measure of factory activity in the U.S.
Midwest rising to a 22-1/2 year high in January on strong
orders and employment prospects. Another showed U.S. consumer
spending ended 2010 on a firmer footing, a trend that
economists expected to continue as the labor market recovery
gains traction.
Meanwhile the Federal Reserve's preferred measure of
consumer inflation - the personal consumption expenditures
price index, excluding food and energy - was unchanged in
December.
Seeing better-than-expected U.S. economic data, strong
earnings reports and increased mergers and acquisitions
activity, investors took a more sanguine view of events in
Egypt and bought risky assets.
The Dow Jones industrial average <> closed up 68.23
points, or 0.58 percent, at 11,891.93. The Standard & Poor's
500 Index <.SPX> gained 9.78 points, or 0.77 percent, at
1,286.12. The Nasdaq Composite Index <> rose 13.19 points,
or 0.49 percent, at 2,700.08.
The Market Vectors Egypt Index ETF <EGPT.P> rose 6.3
percent.
"It's creating a great opportunity to step up and increase
exposure to emerging markets and other areas of the
international markets," said Robert Lutts, president and chief
investment officer at Cabot Money Management in Salem,
Massachusetts. "I'm optimistic that this will be resolved and
blow over."
U.S. stocks were also supported after Exxon Mobil Corp
<XOM.N>, the world's largest publicly traded oil company
reported a higher-than-expected 53 percent increase in
quarterly profit.
The front month futures contract for the Nikkei 225 stock
index <0#NK:> trading in Chicago rose 20 points to 10,255.
The MSCI world equity index <.MIWD00000PUS> rose 0.26
percent while emerging stocks <.MSCIEF>fell 0.55 percent,
pressured by Egypt's unrest.
The pan-European FTSEurofirst 300 index <> rebounded
from three-week lows to end flat.
In currencies, the euro was supported by purchases made by
Asian central banks and Middle East accounts, while nervousness
surrounding the political crisis in Egypt is calming down "as
far as the currency market is concerned," said Brad Bechtel,
managing director of Faros Trading, managing director at FX
advisory and execution firm Faros Trading in Stamford,
Connecticut.
The dollar fell against a basket of currencies, with the
U.S. Dollar Index <.DXY> down 0.44 percent at 77.788, while the
euro<EUR=> rose 0.51 percent at $1.3684, and some traders
expecting a move toward $1.40 in the weeks ahead. Against the
Japanese yen, the dollar <JPY=> eased 0.02 percent at 82.08.
Egypt's stock exchange was closed on Monday and planned to
remained closed Tuesday when a million people are expected to
take to the street to push President Hosni Mubarak out
altogether.
President Mubarak on Monday offered talks on sweeping
reforms with opponents, indicating that massive pressure from
street protesters, Western allies and his own army are ending
his 30 years of one-man rule.
Ratings agency Moody's added to Cairo's financial woes by
downgrading the country's debt rating on concern the Mubarak
regime may spend more to placate protesters.
Among commodities, benchmark Brent crude<LCOc1> hit $101 a
barrel, first time since September 2008, while benchmark U.S.
crude futures<CLc1> settled up 3.19 percent at $89.34 a barrel
on concern that the unrest in Egypt could spread and also on
expected cold weather in the U.S. and strong economic data.
Spot gold prices <XAU=> fell 0.6 percent, to $1330.65 an
ounce.
Copper <CMCU3>, used in power and construction, hit a new
record high in London at $9,782 per tonne in after-hours trade,
and copper for March delivery <HGH1> surged 2 percent, to
settle at $4.4585 per lb on the New York Mercantile Exchange,
just 4 cents away from its own record high.
Tin<CMSN3> hit a record high of $30,240 a tonne on worries
about supplies from top exporter Indonesia.
U.S. Treasuries, seen as a safe-haven during uncertain
times, softened on better-than-expected economic data boosting
confidence that the U.S. economy is on track to recover.
The benchmark 10-year U.S. Treasury note <US10YT=RR> was
down 15/32, with the yield at 3.3861 percent. The 2-year U.S.
Treasury note <US2YT=RR> was down 2/32, with the yield at
0.5698 percent. The 30-year U.S. Treasury bond <US30YT=RR> was
down 25/32, with the yield at 4.5862 percent.
(Reporting by Manuela Badawy, Steven C. Johnson, Edward
Krudy, Robert Gibbons, Richard Leong, Chris Kelly and Pratima
Desai;)
