* Mubarak's resignation in Egypt revives some risk appetite
* Crude oil, gold prices fall as safe-haven fear declines
* Dollar, Treasuries gain on lingering Middle East caution
(Updates with close of U.S. markets)
By Walter Brandimarte and Herbert Lash
NEW YORK, Feb 11 (Reuters) - World stocks surged while oil
prices fell on Friday after the resignation of President Hosni
Mubarak in Egypt bolstered sentiment among investors who feared
regional unrest could disrupt Middle East crude supplies.
U.S. stocks closed out their second straight week of gains,
and emerging market stocks rose for the first time in the past
seven sessions, as measured by MSCI's <.MSCIEF> index. For
details see: []
"Now that the risk of a violent transition in Egypt has
abated, this gives room for the global economy to continue to
expand," said Ralph Preston, a futures analyst with
HeritageWestFutures.com in San Diego.
"The markets are saying Egypt may not be as big a risk at
this point."
Market Vectors Egypt Index ETF <EGPT.P jumped 4.5 percent
to $18.60 and setting a record for daily volume.
However, the U.S. dollar and government debt strengthened
on worries about the transfer of power in Egypt and potential
unrest in oil-producing countries elsewhere in the region.
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 0.23 percent at 78.432, while the euro <EUR=> slid 0.35
percent at $1.3593.
Mubarak handed power to the army after 18 days of
relentless protests caused support from the armed forces to
evaporate. He was the second Arab leader to be overthrown by a
popular uprising in a month. []
The Dow Jones industrial average <> closed up 43.97
points, or 0.36 percent, at 12,273.26. The Standard & Poor's
500 Index <.SPX> gained 7.28 points, or 0.55 percent, at
1,329.15. The Nasdaq Composite Index <> added 18.99
points, or 0.68 percent, at 2,809.44.
MSCI's all-country world stock index <.MIWD00000PUS> rose
0.2 percent, as did its emerging market component.
"It looks like the stock market is taking the news well,"
said Gary Thayer, chief macro strategist with Wells Fargo in
St. Louis.
U.S. oil prices fell to a 10-week low. Although 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."
Fears that the Egyptian uprising could spread turmoil to
major oil producers in the region helped push ICE Brent crude
futures above $100 a barrel for the first time since 2008.
U.S. crude <CLc1> futures for March delivery fell $1.15 to
settle at $85.58 a barrel.
March ICE Brent crude <LCOH1> pared gains to settle up 56
cents at $101.43 a barrel.
U.S. gold futures for April delivery <GCJ1> settled down
$2.10 at $1,360.40 an ounce. []
U.S. Treasury debt prices rallied as Mubarak's resignation
spurred safety bids for bonds and technical signals rekindled
some appetite among inflation-wary investors. []
The benchmark 10-year U.S. Treasury note <US10YT=RR> was up
17/32 in price to yield 3.64 percent.
Despite a slight return in risk appetite, the dollar kept
its gains and was up 0.23 percent at 83.45 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.
(Reporting by Ryan Vlastelica, Robert Gibbons, Julie Haviv,
Ellen Freilich and Frank Tang; Writing by Herbert Lash; Editing
by Andrew Hay)
