US dollar and shares climb on news of Bin Laden's death
Stock markets have been volatile in past weeksThe US dollar has rebounded, and stock markets have gained in Asia after US President Barack Obama said Osama Bin Laden was dead.
Oil prices slid more than 1%; the price of gold and silver also dropped.
Analysts said Bin Laden's death may lower security risks, and would help lift consumer sentiment in the US.
However, they warned that it would do little to ease the longer-term risks hanging over the US and global economies.
"There is some feel-good value and the market will like that," said Chip Hanlon of Delta Global Advisors.
But he added that: "It doesn't change much about the energy situation and doesn't change much about the ongoing battle with radical Islamists."
Stock index futures indicated that Wall Street's main S&P 500 index would rise when it opened later on Monday.
In Asia during afternoon trading, Japan's Nikkei 225 index climbed above the 10,000 level for the first time since mid-March, when the country was struck by a deadly earthquake and tsunami.
Many stock markets in the region, including those in China, Hong Kong, Singapore, Malaysia and Thailand, were closed for a public holiday on Monday, and will react to the news of Bin Laden's death on Tuesday.
Cheaper crude
Brent crude oil was trading 78 cents lower at $125.11, while US light shed 95 cents to $112.98.
"There's probably a knee-jerk reaction to the extent that part of the geopolitical risk has been supported by al-Qaeda, so there will be an initial sell-off," said Jeremy Friesen of Societe Generale.
Oil prices have been pushed to near record levels in recent weeks by the fighting in Libya, and further political instability in the Middle East.
However, analysts said that the price of oil was retreating before the news of Bin Laden's death, adding that many of the other political risks in the Middle East and North Africa had also diminished slightly.
At the same time producer countries such as Saudi Arabia have increased their output in an effort to ease fears of a supply squeeze.
Silver was the day's biggest declining commodity, and at one point was trading some 10% lower.
Gold also dropped as investors bet that economic growth in the US was improving, albeit slowly, and that gains in the two metals were overdone.
"There is always a reaction in commodities to news of this nature," said David Lennox of Fat Prophets.
"The markets will always react quickly, and in this case it is someone who has been held out as the father of all terrorism.
"But any easing we might see in oil or gold markets, in my view, will be short-lived. The longer-term impact will not be substantial."
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