* Mubarak's resignation revives some risk appetite
* Crude oil, gold prices fall as safe-haven fear declines
* Dollar, Treasuries gain on lingering Middle East caution
(Updates prices; adds byline)
By Walter Brandimarte and Herbert Lash
NEW YORK, Feb 11 (Reuters) - World stocks rallied while oil
and gold prices retreated on Friday after more than two weeks
of protest in Egypt forced President Hosni Mubarak from power,
easing concerns that the unrest could disrupt crude supplies.
The U.S. dollar and government debt, however, strengthened
on worries about the transfer of power in Egypt and potential
unrest in oil-producing countries elsewhere in the Mideast.
Data that showed the U.S. economic recovery is gaining
traction helped support the dollar, while nagging concerns
about the European sovereign debt crisis weighed on the euro.
"There was concern that this could lead to rising commodity
prices and a flight to the dollar and now some of that
uncertainty has been removed," said Matthew Keator, partner in
the Keator Group, a wealth management firm in Lenox,
Massachusetts.
The U.S. Dollar Index <.DXY>, a basket of major currencies,
rose 0.21 percent, while the euro <EUR=> was down 0.35 percent
at $1.3546.
Mubarak, the second Arab leader to be overthrown by a
popular uprising in a month, handed power to the army after 18
days of relentless rallies against poverty, corruption and
repression caused support from the armed forces to evaporate.
For details see: []
The Dow Jones industrial average <> was up 52.71
points, or 0.43 percent, at 12,282.00. The Standard & Poor's
500 Index <.SPX> was up 8.54 points, or 0.65 percent, at
1,330.41. The Nasdaq Composite Index <> was up 19.69
points, or 0.71 percent, at 2,810.14.
In Europe, the FTSEurofirst 300 <> index of top
shares closed up 0.41 percent. MSCI's benchmark All-Country
World Index <.MIWD00000PUS> edged up 0.16 percent.
"It looks like the stock market is taking the news well,"
said Gary Thayer, chief macro strategist with Wells Fargo in
St. Louis.
Oil prices fell. Though Egypt is not a major oil producer,
the protests had stirred concerns about the flow of crude oil
along a strategic pipeline and potential disruptions to the
Suez Canal.
"There's still a lot of uncertainty, along with some
cautious optimism," said Jay Suskind, senior vice president at
money management firm Duncan-Williams in Jersey City, New
Jersey. "If there's a sense that Egypt won't go in a
semi-democratic (direction), and that the new power is
unfriendly to the West, we could see some nerves on that."
U.S. crude prices <CLc1> fell $1.27 to $85.46 per barrel.
Spot gold prices <XAU=> slipped $3.53 to $1,357.90 an
ounce.
Despite a slight return in risk appetite, the dollar kept
its gains and was up 0.26 percent at 83.48 against the Japanese
yen <JPY=>.
"Egypt is now seen as a regional political drama and the
market seems to think the risk of a fundamentalist takeover
there is overblown," said Brian Dolan, chief currency
strategist, at Forex.com in Bedminster, New Jersey.
(Additional reporting by Rodrigo Campos, Richard Leong and
Steven C. Johnson; editing by Kenneth Barry, Jeffrey Benkoe and
Dan Grebler)
