April 23, 2013 / 5:52 PM / 7 years ago

GLOBAL MARKETS-Markets briefly roiled on bogus AP blasts tweet

* U.S. Treasuries prices briefly surge on "bogus" AP tweet
    * Wall St turns volatile but resumes uptrend shortly AP says
report false
    * Crude oil prices fall as much as 70 cents following
report, but quickly reverse losses

    By Angela Moon
    NEW YORK, April 23 (Reuters) - Markets for stocks, bonds,
oil and commodities were briefly roiled on Tuesday after a bogus
report of explosions at the White House.
    Shortly after 1 p.m. (1700 GMT), U.S. government debt prices
surged briefly and stocks fell sharply after a false tweet from
the Associated Press said there had been two explosions at the
White House and that President Barack Obama had been injured. 
    An Associated Press spokesman told Reuters that an AP
Twitter message reporting two explosions in the White House was
"bogus." The White House said Obama was fine.
    U.S. stocks sharply cut gains briefly and then
bounced back. The dollar pared gains against the yen, and
the euro extended declines against the dollar.
    "High-frequency traders cancel their orders on even one
little tweet. They provide so much liquidity and don't have
obligations like market makers did in the past. We need other
participants to make sure this kind of volatility doesn't happen
and we don't (have them) any more," said Dennis Dick,
proprietary trader at Bright Trading LLC in Las Vegas.
    In the energy market, crude oil  prices fell
as much as 70 cents a barrel in a three-minute period following
the Tweet, but just as quickly reversed those losses as it
became clear the AP message was bogus.
    Global equity markets resumed their upward
trend, with Wall Street higher on strong corporate earnings.
    The Dow Jones industrial average was up 128.86
points, or 0.88 percent, at 14,696.03. The Standard & Poor's 500
Index was up 14.62 points, or 0.94 percent, at 1,577.12.
The Nasdaq Composite Index was up 34.82 points, or 1.08
percent, at 3,268.37.
    European shares posted their biggest one-day gain
in seven months, while the euro hit a two-week low against the
dollar after weak German data sparked speculation the European
Central Bank could cut interest rates.
    The euro was last down 0.5 percent at $1.2999 while
the dollar was up 0.1 percent against the yen at 99.23 yen
    MSCI's world equity index, which is heavily
weighted toward U.S. shares, was up 1 percent.
    The benchmark 10-year U.S. Treasury note was
unchanged with the yield at 1.6945 percent.
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