* Wall Street indices up nearly 1 percent
* Oil falls to 14-month low on milder Ukraine tension,
* Dollar rises, gold dips under $1,300
(Adds Wall St gains, Treasury prices, quotes and details;
changes dateline; previous LONDON)
By Michael Connor
NEW YORK, Aug 18 U.S. stock prices jumped on
Monday, joining equities rallies in Europe, as investors
breathed easier over the crisis in Ukraine and knocked oil
prices to lows not seen in more than a year.
U.S. bond prices dropped and the dollar rose after dipping
on Friday, when the government in Kiev said its artillery had
hit a Russian armored column. Russia denied its forces had
crossed into Ukraine.
On Wall Street, an $8.95 billion rival offer by discount
retailer Dollar General Corp to buy Family Dollar
also helped prices.
The Dow Jones industrial average rose 153 points, or
0.92 percent, to 16,815.91, the S&P 500 gained 15.08
points, or 0.77 percent, to 1,970.14 and the Nasdaq Composite
added 38.42 points, or 0.86 percent, to 4,503.35.
In Europe's equities rally, which included a 1.2 percent
rise in the FTSEurofirst 300, German blue-chips were
among the top gainers despite being seen as especially
vulnerable to tensions between the West and Russia.
"Friday's news spooked investors, but it turns out that
there was no escalation involving Russian forces over the
weekend and that rebel forces have actually been retreating,
which helps the market reverse losses," said Saxo Bank trader
Pierre Martin. "Investors want to believe in this rebound."
Asian shares were broadly flat. MSCI's main measure of
Asia-Pacific shares outside Japan was up 0.1
Oil fell below $102 a barrel as investor concerns over
conflict in Ukraine and Iraq eased, and as higher Libyan oil
output added to already ample supplies.
Brent crude was down $1.91 at $101.62 a barrel by
1400 GMT after falling to $101.43, the lowest since June 26,
2013. U.S. crude fell $1.17 to $96.18, after a gain of
$1.77 in the previous session.
U.S. Treasury debt prices fell after three days of gains
last week. Risk appetite grew on upbeat U.S. housing data and
the easing tensions in the Middle East and Ukraine.
U.S. 10-year note prices fell 8/32 to yield
2.375 percent, from 2.339 percent late on Friday. U.S. 30-year
bond prices also slid, dropping 22/32 to yield 3.170 percent,
from 3.129 percent the previous session
Yields on German 10-year debt, the euro zone
benchmark, rose 2.6 basis points to a shade above 1.001 percent.
As equities rose, gold slipped below $1,300 an ounce and was
last trading at $1,297.50.
In currency markets, the dollar as tracked by the U.S.
dollar index was up nearly 0.2 percent.
"The market was a little bit concerned that things could
flare up in the Ukraine region over the weekend, and the fact
that they haven't has made the market relax a little bit," said
Douglas Borthwick, managing director at Chapdelaine Foreign
Exchange in New York.
(Reporting by Michael Connor in New York; Additional Reporting
by Chuck Mikolajczak, Sam Forgione and Gertrude Chavez-Dreyfuss
in New York, and Nigel Stephenson in London; Editing by Dan