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Sunday, January 6, 2008

Bhutto killing unsettles markets

Global markets have been rattled, with oil prices rising to their highest in a month after the killing of Pakistan's former Prime Minister Benazir Bhutto.
UK and Asian shares declined, while volatile trade dominated US bourses, which ended mixed.
An early oil rally prompted profit taking leaving a barrel of New York crude down 64 cents at $96 and London Brent crude falling 90 cents at $93.88.
The Karachi Stock Exchange will be shut for three days of mourning.
Ms Bhutto was assassinated on Thursday as she left an election rally, plunging the country into crisis.
It's not so much what happens in Pakistan. It's what happens in Afghanistan and everywhere else
Steve Rowles, CFC Seymour securities
Concerns about a less stable geopolitical environment unnerved markets, prompting a sell-off in shares in favour of assets considered safer, including precious metals.
An ounce of gold for February delivery added $10.90 to settle at $842.70 on the New York Mercantile Exchange after reaching a new 27-year peak at $843.50 earlier.
The US dollar fell against the Japanese yen, euro and Swiss franc as the plan to return Pakistan - a key US ally in the fight against terrorism - to a democracy looked fragile as violent protests erupt around the country.
"The sudden event has caught worldwide attention because Pakistan is not any other developing country. It is a nuclear-power country," Westcomb Securities said in a note.
"However, we view the current response to the event to be short-term," the note said.

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