Stocks up, oil hits 3-month low

European shares leapt and oil prices hit three-month lows on Friday as US-led troops swept across the Iraqi desert and British forces said they hoped to be in Baghdad within three or four days. Demand for safe-haven bonds fell, pushing up yields, particularly on the US treasuries. The dollar rose half a per cent against major currencies and Wall Street looked set for solid gains later in the day.

Crude oil, which had shed a quarter of its value as war approached, reversed course from earlier gains which had come on talk Iraq may have set fire to some oil wells. European shares roared ahead as investors took an optimistic view of the US’ progress in the Iraq war, leaving the FTSE Eurotop 300 index up nearly 19 per cent since March 12. On Friday, it was up 2.54 percent and the narrower DJ EuroStoxx 50 gained 3.44 per cent. (Reuters)