LONDON (Reuters) – A proposal by Venezuela President Hugo Chavez to try to broker a peace deal in Libya briefly pushed oil lower on Thursday, while recently risk-averse stock markets put in some gains.

European markets were volatile ahead of a European Central Bank meeting that was expected to sharpen its anti-inflation line.

Early losses of around $3 a barrel in crude oil were pared back on reports of continued fighting in Libya, including air strikes against rebel positions.

Brent crude oil fell as low as $113.09 a barrel but was later back up around $116.

World stocks as measured by MSCI were up 0.2 percent.

The early moves in oil were prompted by Chavez, a good friend of Libyan leader Muammar Gaddafi, suggesting a commission from Latin America, Europe and the Middle East could be formed to try to reach a negotiated outcome to the Libyan crisis, which has driven oil prices to levels that may threaten global economic recovery.

Arab League Secretary-General Amr Moussa said the proposal a was under consideration by his group.

Some oil analysts suggested that the proposal was a convenient excuse for traders to adjust their positions.

“If it’s coming out of Chavez, it might not have a great degree of substance,” said Tim Riddell, head of technical analysis at ANZ in Singapore.

“The fact that the markets have been so volatile and without having concrete evidence of any material shift in the unrest in the Arab world suggests to me that we are at best consolidating.”

Financial markets have nonetheless become highly sensitive to North Africa and Middle east tension because of the broad impact that a rising oil price has on everything from corporate profits to consumer confidence and interest rate projections.

STOCKS RISE

European shares rose on Thursday buoyed by positive U.S. economic news overnight and the falling oil price.

The FTSEurofirst 300 index of leading European shares was up 0.4 percent, partially recovering the previous session’s 0.7 percent fall.

Forecast-beating U.S. private sector jobs data and positive comments from the Federal Reserve in its latest Beige Book report overnight helped buoy equities in both the United States and Asia.

“(There is) some hope that the global recovery is strong enough to weather any shocks that may arise due to uncertainties in the Middle East,” said Zahid Mahmood, senior dealer at Capital Spreads.

The euro hovered near a four-month high against the dollar, supported by expectations that the ECB meeting will pave the way for rate rises later in the year.

Investors have pushed the euro up about 3 percent from a low hit on February 14.

The euro was slightly weaker against the dollar at $1.3851, but close to its four-month peak of $1.3890 hit on trading platform EBS on Wednesday.

Euro zone government bonds traded lower ahead of the ECB meeting.

(Additional reporting by Neal Armstrong and Simon Falush; Editing by Hugh Lawson)

NEW YORK – The New York Times is reporting that market operators Nasdaq OMX and InterContinental Exchange are discussing forming a partnership to bid for NYSE Euronext.

The Times cited a person briefed on the matter. That unnamed person told the Times that an offer may not emerge for several weeks. The person also cautioned that there is a low probability of a bid. Representatives from Nasdaq OMX Group Inc. and InterContinental Exchange Inc. didn’t immediately respond to messages seeking comment.

Deutsche Boerse, the owner of the Frankfurt stock exchange, said on Tuesday that it will buy NYSE Euronext Inc., the parent of the New York Stock Exchange in a deal that values it at $10 billion.

A Deutsche Boerse-NYSE combination would put pressure on other exchange operators to grow to compete.

NEW YORK (Reuters) – Stocks rose on Monday as a weak dollar and expectations of economic stimulus from the Federal Reserve prompted investors to pick up risker assets.

The lagging greenback set the tone early in the day after a weekend meeting of the Group of 20 stopped short of setting targets to reduce trade imbalances. The greenback slid broadly, while commodity prices climbed.

Equities and the dollar have developed a strong inverse relationship, and growing speculation the Fed will extend monetary easing at its next meeting in November has pressured the dollar while boosting equities.

In a research report, Goldman Sachs said the Federal Open Market Committee is almost certain to announce renewed monetary easing at its November 2-3 meeting.

Goldman analysts calculated the Fed may have to buy up to $4 trillion in assets to achieve desired growth and inflation targets. They forecast the Fed’s second round of quantitative easing will likely be worth $2 trillion.

“The quantitative easing talk has hurt the dollar, helped the equity market and created this risk-taking environment,” said Nick Kalivas, senior equity index analyst at MF Global in Chicago.

“It’s creating this idea it’s going to be positive for asset inflation, so equities should benefit from that. There’s a reluctance to sell the market in the face of that possibility in front of that meeting … “

The Dow Jones industrial average (.DJI) gained 71.18 points, or 0.64 percent, to 11,203.74. The Standard & Poor’s 500 Index (.SPX) rose 7.20 points, or 0.61 percent, to 1,190.28. The Nasdaq Composite Index (.IXIC) climbed 17.15 points, or 0.69 percent, to 2,496.54.

Resource shares led the way higher on the back of the rising commodity prices. Freeport-McMoRan Copper and Gold Inc (FCX.N) advanced 2.8 percent to $96.62, and the S&P materials sector (.GSPM) gained 2.1 percent.

Citigroup Inc (C.N) was up 2.4 percent at $4.21 after Goldman Sachs added the stock to its “conviction buy list,” saying the big bank faced limited mortgage loan repurchase risk compared with its peers.

In a light day for economic data, sales of previously owned U.S. homes rose more than expected in September, the National Association of Realtors said, helping equities extend gains.

(Editing by Jeffrey Benkoe)

WASHINGTON – President Barack Obama says he’s been frustrated over accusations he’s been too hard on Wall Street, saying his push for financial reform doesn’t amount to “being extremist or anti-business.”

Answering questions at a town hall forum sponsored by CNBC, Obama said he’s been amused about talk of “me beating up on Wall Street.”

The president said he believes “most folks on Main Street feel like they got beaten up,” a line that drew a hearty ovation from the audience gathered at the Newseum.

Obama also said “there’s a big chunk of the country that thinks I’ve been too soft on Wall Street. What I’ve tried to do is be practical.”

LONDON – Germany’s main stock market was the only major index in Europe and the U.S. to fall Friday as investors were dismayed by reports that Deutsche Bank AG is planning to raise as much as euro9 billion ($11.4 billion) to lift its stake in Deutsche Postbank AG and shore up its capital base.

Overall though, sentiment continued to be supported by Thursday’s stronger than anticipated U.S. economic data and an unexpected upward revision to second quarter Japanese economic growth.

In Europe, the FTSE 100 index of leading British shares closed up 7.48 points, or 0.1 percent, at 5,501.64 while France’s CAC-40 ended up 3.67 points, or 0.1 percent, at 3,725.82.

Germany’s DAX closed down 6.75 points, or 0.1 percent, at 6,214.77, having spent the whole session in negative territory following reports that Deutsche Bank is poised to tap shareholders for more cash, to be partly used to increase its stake in retail bank Deutsche Postbank AG. It currently holds nearly 30 percent of Postbank.

Deutsche Bank’s share price fell around 5 percent, making it easily the biggest decliner on the DAX. Rival Commerzbank AG was the second bigger faller, with a 2 percent drop, as investors fretted that it may also need to tap the markets for cash, just days after a Wall Street Journal report reignited concerns that this summer’s stress tests into 91 EU banks were not rigorous enough.

The speculation that Deutsche Bank and others will be looking to raise money comes just before the Bank for International Settlements is to make public new rules that are likely to compel banks to hold more capital in reserve than they currently do. The new rules are expected to be outlined on Sunday.

The expectation is that the BIS will require banks to have a capital ratio of at least 7 percent. While most banks’ capital ratios are well above that, it does represent a marked increase on the capital requirements before the financial crisis.

The new capital rules will also affect U.S. banks but they have raised far more cash in the markets over the past couple of years than their counterparts in the EU.

As a result, investors in the U.S. are fairly indifferent to the upcoming publication of the new capital rules.

On Wall Street, the Dow Jones industrial average was closed up 0.5 percent at 10,462.77, while the broader Standard & Poor’s rose 0.5 percent to 1,109.55.

Shares in the U.S. continued to be supported Thursday’s strong jobs and trade data, which helped to ease fears that the world’s largest economy might slip back into recession.

“If markets remain fundamentally hesitant, some better-than-expected data seems to have reduced concerns about an imminent double dip in the U.S.,” said Herve Goulletquer, an analyst at Credit Agricole.

Earlier in Asia, stocks generally advanced after Japan said its economy grew more than estimated in the second quarter of the year and Thursday’s advance in Europe and the U.S.

The Shanghai Composite Index rose 0.3 percent to 2,663.21 while Hong Kong’s Hang Seng Index rose 0.4 percent to 21,257.39.

Japan’s Nikkei 225 stock average closed up 1.6 percent at 9,239.17 after slipping back from the morning’s 2 percent rise. Investors welcomed figures showing that improved capital spending helped Japan’s economy grow 0.4 percent in the second quarter from the previous quarter, compared with an initial estimate of 0.1 percent.

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AP Business Writer Erika Kinetz in Mumbai, India contributed to this report.

(This version CORRECTS Updates with Wall Street close, corrects name of Bank for International Settlements. This story is part of AP’s general news and financial services.)

LONDON – German stocks led European markets modestly lower Friday following reports that Deutsche Bank AG is planning to raise as much as euro9 billion ($11.4 billion) to lift its stake in Deutsche Postbank AG and shore up its capital base.

In Europe, the FTSE 100 index of leading British shares was down 0.1 percent at 5,489.27 while France’s CAC-40 fell 5.1 points, or 0.1 percent, to 3,717.05.

Germany’s DAX was 16.07 points, or 0.3 percent, lower at 6,205.45, with Deutsche Bank’s 5 percent share price drop topping the list of fallers. Rival Commerzbank AG was the second bigger faller, with a 2.8 percent drop, as investors fretted that it may also need to tap the markets for cash, just days after a Wall Street Journal report reignited concerns that this summer’s stress tests into 91 EU banks were not rigorous enough.

“Eurozone bank funding remains a worry,” said Neil MacKinnon, global macro strategist at VTB Capital.

The speculation that Deutsche Bank will be looking to raise money comes just ahead of the publication of a report by the Bank of International Settlements that is likely to compel banks to hold more capital in reserve than they currently do.

The expectation is that the BIS will require banks to have a capital ratio of at least 7 percent. While most banks’ capital ratios are well above that, it does represent a marked increase on the capital requirements before the financial crisis.

The new capital rules will also affect U.S. banks but they have raised far more cash in the markets over the past couple of years than their counterparts in the EU.

Wall Street is poised to open modestly higher later — Dow futures were up 10 points, or 0.1 percent, to 10,348 while the broader Standard & Poor’s 500 futures rose 3 points, or 0.3 percent, to 1,100.60.

On Thursday, U.S. stocks ended modestly higher after strong jobs and trade data eased fears that the world’s largest economy might slip back into recession.

“Some good news in the U.S. finally, in the form of a narrower trade deficit and lower initial jobless claims, have helped to provide a counterpoint to the generally pessimistic mood prevailing,” said Daragh Maher, an analyst at Credit Agricole. “But we are still in a market that is reactive rather than proactive, looking at the latest nugget of news for inspiration rather than establishing any positions with real long-term conviction.”

Earlier in Asia, stocks generally advanced after Japan said its economy grew more than estimated in the second quarter of the year and Thursday’s advance in Europe and the U.S.

The Shanghai Composite Index rose 0.3 percent to 2,663.21 while Hong Kong’s Hang Seng Index rose 0.4 percent to 21,257.39.

Japan’s Nikkei 225 stock average closed up 1.6 percent at 9,239.17 after slipping back from the morning’s 2 percent rise. Investors welcomed figures showing that improved capital spending helped Japan’s economy grow 0.4 percent in the second quarter from the previous quarter, compared with an initial estimate of 0.1 percent.

In the currency markets, the focus once again remained firmly on the value of the yen, which struck a fresh 15-year high against the dollar on Wednesday.

By mid morning London time, the dollar was up 0.1 percent at 83.91 yen, compared with Wednesday’s low of 83.35 yen.

Meanwhile, the euro was 0.3 percent higher at $1.2728.

Benchmark crude for October delivery was up $1.44 at $75.69 a barrel in electronic trading on the New York Mercantile Exchange. The contract lost 42 cents to settle at $74.25 a barrel on Thursday.

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AP Business Writer Erike Kinetz in Mumbai, India contributed to this report.

NEW YORK (Reuters) – Stock index futures rose slightly on Friday ahead of a speech from Federal Reserve Chairman Ben Bernanke and an estimate on second-quarter economic growth, which may offer clarity on how strongly a recovery is taking hold.

The second estimate of U.S. second-quarter gross domestic product will be released at 8:30 a.m. EDT. Economists expected an annualized rate of growth of 1.4 percent, down from 2.4 percent in the previous estimate.

Recent disappointing reports have pressured equities and underlined fears of a double-dip recession.

“A weak GDP will make a double dip more likely,” said James Dailey, portfolio manager at the Harrisburg, Pennsylvania-based TEAM Asset Strategy Fund. Dailey said a reading below 1 percent was “certainly plausible.”

“Direct stimulus from the government has declined, and now we’re going back to economic fundamentals, which are stressed with high unemployment and without income growth.”

Bernanke will speak later Friday at a retreat for central bankers at Jackson Hole, Wyoming. He may discuss prospects for the world’s biggest economy but isn’t expected to offer any clues on whether the Fed will pump in more cash to keep the recovery going.

“Some investors are hoping for a magic bullet from Bernanke, but I doubt the Fed is going to announce anything of any significance,” Dailey said. “I think something significant is coming, but it’s too early for that now.”

The Thomson Reuters/University of Michigan Surveys of Consumers’ final August consumer sentiment index reading is due at 9:55 a.m. EDT. Economists look for a reading of 69.6, a repeat of the previous number.

S&P 500 futures rose 2.9 points and were slightly above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 17 points, and Nasdaq 100 futures were up 8.5 points.

3PAR Inc (PAR.N), the data storage company, accepted a $1.8 billion buyout offer from Dell Inc (DELL.O), even after Hewlett-Packard Co (HPQ.N) raised its own bid to $1.8 billion late Thursday. 3PAR shares gained 8.9 percent to $28.34 in premarket trading.

In other acquisition news, cybersecurity firm ArcSight Inc (ARST.O) put itself up for sale, and possible buyers may include Oracle Corp (ORCL.O), International Business Machines Corp(IBM.N), or HP, the Wall Street Journal reported. ArcSight shares rose 2.4 percent to $37.50 before the bell.

Luxury retailer Tiffany & Co (TIF.N) reported higher quarterly profits and raised its full-year earnings forecast.

Boeing Co (BA.N) has pushed back delivery of its first 787 Dreamliner by several weeks to the middle of the first quarter of 2011 due to delays in a Rolls-Royce (RR.L) engine needed for final flight testing.

The Dow closed below 10,000 points on Thursday, the first time it ended below that psychologically important level since July 6.

(Editing by Jeffrey Benkoe)

NEW YORK (Reuters) – Stocks rose on Tuesday after earnings from Wal-Mart and Home Depot and a $39 billion takeover bid in the agriculture sector bolstered confidence in the corporate outlook.

The two retailing giants reported profit that topped expectations, buoying the Dow industrials.

Wal-Mart Stores Inc (WMT.N) was up 1.9 percent at $51.38 and Home Depot Inc (HD.N) gained 4.8 percent to $28.69.

“There has been a tug of war between weak economic data and strong corporate results. Today, the earnings finally won,” said John Praveen, chief investment strategist at Prudential International Investments Advisers LLC in New Jersey.

Economic data was mixed. Industrial production rose and wholesale prices rose, allaying some fears of deflation, but housing starts suggested that sector remains weak. Most economic data in recent weeks have portrayed a slowdown in the recovery, driving investors away from equities.

The materials sector handily outperformed the broad market after BHP Billiton Ltd (BHP.AX)(BLT.L) made an unsolicited $39

billion takeover bid for Potash Corp of Saskatchewan Inc (POT.TO)(POT.N). The world’s largest fertilizer maker rejected the offer as inadequate.

Potash’s U.S.-traded stock surged 27.7 percent to $143.17. Fertilizer producer CF Industries (CF.N) jumped 4.7 percent to $88.53 after Goldman Sachs upgraded the stock, while the materials sector (.GSPM) gained 2.3 percent.

“The increase in M&A shows CEO’s and CFO’s have more confidence in the outlook for the economy and are willing to start to deploy some of the high cash balances, which have built up in recent months,” said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut.

The Dow Jones industrial average (.DJI) was up 103.84 points, or 1.01 percent, at 10,405.85. The Standard & Poor’s 500 Index (.SPX) was up 13.16 points, or 1.22 percent, at 1,092.54. The Nasdaq Composite Index (.IXIC) was up 27.57 points, or 1.26 percent, at 2,209.44.

Volume continued to be low with 6.99 billion shares traded on the combined NYSE Arca, Nasdaq and American Stock Exchanges, significantly lower than last year’s daily average of 9.65 billion.

Wal-Mart and the retail sector results essentially signal the end of the earnings period. With 93 percent of S&P 500 companies having reported, earnings grew 38 percent in the second quarter. Seventy-five percent of companies in the S&P 500 exceeded expectations, according to Thomson Reuters data.

In the options market, Potash was among the leaders in single stock flow as investors exchanged about 269,000 contracts in the name led by the trading of 159,000 calls, according to Trade Alert.

On the New York Stock Exchange, advancers beat decliners 4 to 1. On Nasdaq, advancers beat decliners 3 to 1.

(Additional Reporting by Leah Schnurr and Doris Frankel; Editing by Kenneth Barry)

NEW YORK (Reuters) – Stocks rose on Tuesday after earnings from Wal-Mart (WMT.N) and Home Depot (HD.N) and a $39 billion takeover bid in the agriculture sector bolstered confidence in the corporate outlook.

The Dow Jones industrial average (.DJI) gained 103.84 points, or 1.01 percent, to 10,405.85. The Standard & Poor’s 500 Index (.SPX) rose 13.20 points, or 1.22 percent, to 1,092.58. The Nasdaq Composite Index (.IXIC) climbed 27.57 points, or 1.26 percent, to 2,209.44.

(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)