Global stocks edge up, oil gains despite weak Chinese data

NEW YORK | By Rodrigo Campos

A red London bus passes the Stock Exchange in London February 9, 2011.

Reuters/Luke MacGregor

(Reuters) - Crude prices on Monday added to last week's gains on bets on a slowdown in U.S. oil production, while stocks on major markets drifted higher despite a surprisingly large fall in Chinese exports that heightened concern over demand for commodities.
Chinese exports fell 15 percent year on year in March, confounding expectations for a 12 percent rise, while imports shrank at their fastest rate since May 2009.
The euro EUR= slipped to a four-week low on a renewed focus on the monetary policy differential between the United States and other major economies, with the Federal Reserve on track to raise U.S. interest rates for the first time in nearly a decade. The Australian dollar AUD= slumped to a nearly six-year low versus the greenback, weighed by the Chinese data.
Wall Street opened higher boosted by technology and bank stocks with traders focusing on the start of the quarterly earnings season. Corporate America's
reaction to a strengthening dollar and falling oil prices throughout the first quarter are the key elements of this reporting season.
"We had a big move last week and we're heading into earnings season and we've had a few warning signs last week from a couple of companies where the impact of foreign exchange is going to be greater than what was previously thought," said Brian Fenske, head of sales and trading at ITG in New York.
The Dow Jones industrial average .DJI rose 33.34 points, or 0.18 percent, to 18,090.99, the S&P 500 .SPX gained 3.42 points, or 0.16 percent, to 2,105.48 and the Nasdaq Composite .IXIC added 24.60 points, or 0.49 percent, to 5,020.58.
A measure of equities in major markets .MIWD00000PUS rose 0.1 percent and the FTSEurofirst 300 .FTEU3 index of top European shares was up 0.1 percent, holding on to last week's 3.7 percent jump.
Chinese shares hit seven-year highs on expectation of further stimulus measures after the surprisingly week import/export data.
"We continue to expect more monetary easing for a variety of reasons, and the trade data offers further support for this," Oliver Barron, analyst at China-focused investment bank NSBO said in a note to clients.
DATA HURTS CURRENCIES
The weak Chinese data also raised concern over a possible global slowdown and hurt exporters of natural resources. The Australian dollar fell nearly 1.5 percent while the New Zealand dollar NZD= fell 1.4 percent.
The euro EUR= was down 0.2 percent at $1.0581, having fallen as low as $1.0519. The dollar index .DXY, which measures the greenback against a basket of currencies, rose 0.2 percent. The dollar was flat against the yen JPY=.
San Francisco Fed President John Williams told Reuters that as the U.S. job market improves, the risk of an unexpected setback derailing the recovery once the Fed raises rates is receding.
Crude oil prices rose despite the stronger greenback as traders bet a slowdown in U.S. drilling would contribute to higher prices. Brent crude LCOc1 rose 1 percent to $58.47 per barrel and U.S. crude CLc1 added 0.8 percent to $52.06.
The stronger dollar and prospects of higher U.S. rates helped push gold XAU= lower for the fourth session in five. It last traded at $1,199.85 an ounce, down 0.6 percent.
(Reporting by Rodrigo Campos; Editing by James Dalgleish)