Brent crude rose above $108 after Cyprus secured a last-minute bailout deal, averting a deeper euro zone crisis and boosting the outlook for oil demand in the troubled region.
Gold extended initial losses, hitting its lowest in ten days as investors unloaded safe-haven assets and sought equities after Cyprus struck a last-minute bailout deal with lenders.
Risk assets across Asia rallied on Monday after Cyprus secured a last-minute deal with international lenders for a 10 billion euro ($13 billion) bailout, narrowly avoiding a collapse in the Cypriot banking system.
The euro rose against the dollar on Friday, posting its first weekly gain in seven weeks on hopes Cyprus will find a solution before Monday to avert a financial meltdown.
Brent crude edged higher on Friday while U.S. crude futures jumped more than $1 per barrel, sending the spread between the two contracts to the narrowest level since July.
Prices for U.S. Treasurys traded flat on Friday as a bailout for Cyprus remained in doubt going into the weekend.
Gold fell as investors took profits a day after the precious metal hit a one-month high, and safe-haven buying dried up as a deal between Greece and Cyprus eased fears of an escalating euro zone debt crisis.
Festering concerns of a banking collapse in Cyprus led to a sell-off in most Asian markets on Friday, resulting in a 2 percent weekly loss. However, mainland shares outshone to post a weekly gain of 2 percent after Thursday's Flash PMI data.
The yen surged against the dollar and euro on Thursday as fears of a financial meltdown in Cyprus spurred investors to sell riskier trades.
Prices for U.S. Treasurys rose on Thursday as bailout plans for Cyprus remained in disarray.
Crude oil was pushed lower by fears of further turmoil in the euro zone, as Cyprus scrambled to avoid bankruptcy, and by manufacturing data which showed a deepening downturn in the currency bloc.
Gold rose to a near one-month high, as safe-haven buying emerged after the European Union gave Cyprus an ultimatum to raise billions of euros it needs to clinch a bailout deal or face a likely exit from the currency zone.
European shares closed lower on Thursday amid a selloff spurred by concerns over a banking collapse in Cyprus.
Stock index futures hovered around the flatline Thursday following the weekly jobless claims report, while uncertainty in Cyprus kept investors on edge.
A pick-up in Chinese manufacturing and expectations of monetary easing drove North Asian shares higher but political tensions in Seoul and Sydney put a cap on further regional gains.
Should investors take comfort from the HSBC's flash manufacturing PMI for March that came in above expectations?
Announcing the U.K. budget, Chancellor George Osborne disappointed those who wanted to see a big change in the Bank of England's mandate. The pound strengthened a bit as a result, but I don't think those who are waiting to see it weaken will be disappointed for long.
Housing and jobs data will get a close look from traders Thursday, as they continue to dissect the latest comments from the Fed.
The US dollar rallied after a decision by the Federal Reserve to continue its aggressive monetary easing fueled optimism about the US economic recovery.
Gold slipped slightly in brisk trade on Wednesday after the U.S. Federal Reserve issued its latest policy statement, repeating its accommodative stance while extending it another two years, but gains in the euro provided support for the precious metal.
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