Portugal Colonial - Oil slides, gold loses lustre as Iran threat recedes

Both main crude oil contracts shed around five percent on easing US-Iran tensions.

"The trigger for the sharp reversal were comments from President Trump suggesting an easing of tensions with Iran," said Trade Nation analyst David Morrison.

"This reduced fears of an immediate supply shock," he added.

Washington has hit out at the country's leadership in recent weeks over its deadly response to anti-government protests, with Trump threatening military action.

He has also pushed for an agreement over Iran's nuclear programme.

Gold, which has benefitted from safe haven trading when geopolitical tensions mount as well as the lower value of the US dollars, continued its slide lower.

It shed 0.7 percent to $4,710 an ounce, well below the record highs above $5,500 it hit last week.

"Many investors bought gold and silver as protection against the volatile geopolitical backdrop, yet they've learned the hard way these assets can also be volatile themselves," said Russ Mould, investment director at AJ Bell.

It also took a hit on news that US President Donald Trump had chosen Kevin Warsh to become new head of the US Federal Reserve.

Traders regard Warsh, a former Morgan Stanley investment banker and Fed governor, as the toughest inflation fighter among the final candidates, raising expectations that his monetary policy would underpin the greenback.

The choice also eased concerns about the Fed's independence following a series of attacks on incumbent Jerome Powell over his reticence to cut rates as quickly as the president wanted.

In equities trading, after a brief dip as trading got underway, Wall Street's main indices turned around and were higher in early afternoon trading.

US shares were also boosted by a survey that showed manufacturing activity expanding for the first time in 12 months in January, with improvements in new orders and production.

European shares ended the day with solid gains, with London's FTSE 100 striking a fresh record high.

But Asian equities markets had slumped earlier in the day on tech concerns.

Seoul, which has hit multiple records this year thanks to its big tech weighting, plunged more than five percent on Monday, with chip giant SK hynix shedding eight percent and market heavyweight Samsung off more than six percent.

Tokyo, also home to several big-name tech firms, shed more than one percent, as did Taipei, where chip giant TSMC is listed.

After a strong January fuelled by artificial intelligence bets, stocks went into reverse last week as traders resumed questioning the wisdom of the vast sums pumped into the sector and when they will see returns.

That has also raised fears of a tech bubble that could soon pop.

The latest round of selling came after Microsoft last week announced a surge in spending on AI infrastructure, reviving concerns companies could take some time before seeing a return on their investments.

Meanwhile bitcoin briefly tumbled below $75,000 to levels where it traded before the election of Donald Trump to a second term as US president.

- Key figures at around 1630 GMT -

New York - Dow: UP 0.9 percent at 49,340.98 points

New York - S&P 500: UP 0.6 percent at 6,977.84

New York - Nasdaq Composite: UP 0.7 percent at 23,616.48

London - FTSE 100: UP 1.2 percent at 10,341.56 (close)

Paris - CAC 40: UP 0.8 percent at 8,193.81 (close)

Frankfurt - DAX: UP 1.1 percent at 24,797.52 (close)

Tokyo - Nikkei 225: DOWN 1.3 percent at 52,655.18 (close)

Hong Kong - Hang Seng Index: DOWN 2.2 percent at 26,775.57 (close)

Shanghai - Composite: DOWN 2.5 percent at 4,015.75 (close)

Euro/dollar: DOWN at $1.1803 from $1.1856 on Friday

Pound/dollar: DOWN at $1.3650 from $1.3688

Dollar/yen: UP at 155.56 yen from 154.64 yen

Euro/pound: DOWN at 86.47 pence from 86.63 pence

Brent North Sea Crude: DOWN 4.9 percent at $65.51 per barrel

West Texas Intermediate: DOWN 5.2 percent at $61.81 per barrel

C.Cassis--PC