Egypt's justice minister denies Al-Arabiya TV report that the government has resigned.

A little more detail on the U.N. comments:

Egypt must engage in "serious national dialogue", U.N. says

GENEVA - The U.N. human rights office called on President Mohamed Mursi on Tuesday to listen to the demands of the Egyptian people and engage in a "serious national dialogue" to defuse the political crisis.

Rupert Colville, spokesman of U.N. High Commissioner for Human Rights Navi Pillay, also said the role of the military, which gave Mursi a 48-hour ultimatum on Monday to resolve the impasse after mass anti-government protests, was crucial.

"We call on the president of Egypt to listen to the demands and wishes of the Egyptian people expressed during these huge protests over the past few days, and to address key issues raised by the opposition and by civil society in recent months," he told a news briefing in Geneva.

"We urge all political parties and social groups in Egypt to urgently engage in a serious national dialogue in order to find a solution to the political crisis and prevent an escalation of violence."

Asked about the role of the military, Colville said: "We're talking hopefully about a newly developing democracy in Egypt, so obviously what the military does or doesn't do is crucial. Nothing should be done that would undermine democratic processes in the country."

Mursi has rebuffed the army ultimatum to force a resolution, saying on Tuesday he had not been consulted and would pursue his own plans for national reconciliation.

"Egypt's democracy is obviously very fragile and nobody wants to see it collapse or fall apart in some way," Colville told Reuters Television.

(Reporting by Stephanie Nebehay and Vincent Fribault; Editing by Alison Williams)

Egypt stocks surge after army ultimatum on political crisis

CAIRO - Egyptian shares jumped to a three-week high in early trade on Tuesday, a day after the armed forces gave Islamist President Mohamed Mursi a virtual ultimatum to share power.

Local investors believe army intervention in the political crisis could help put an end to 30 months of instability that has frightened away investors and tourists and drained the country's finances.

Nationwide protests against Mursi prompted the army to tell feuding politicians they had 48 hours to compromise or it would impose its own road map for the country.

The bourse's benchmark index jumped 4.9 percent in early trade to its highest point since June 9 after a bank holiday on Monday to mark the start of a new fiscal year.

Share prices fell 12 percent in June on fears that a mass protest called for June 30 might deteriorate into violence, further aggravating a deteriorating economy.

"It's a relief rally. The market has been sold off very heavily in the last few weeks," said Simon Kitchen, strategist for EFG Hermes.

Mursi rebuffed the army ultimatum on Tuesday, saying he had not been consulted and would pursue his own plans for national reconciliation.

But he looked increasingly isolated, with the liberal opposition refusing to talk to him, millions of Egyptians in the street protesting against him and at least five of his ministers resigning from his government.

"The political environment is still very fluid, so its not certain how long this can last," Kitchen said.

Shares soared in companies considered close the government of Hosni Mubarak, who was ousted from the presidency in a 2011 popular uprising.

Private equity firm Citadel Capital jumped by the 10 percent maximum allowed under stock exchange rules. Among property developers Palm Hills rose 9.3 percent and Talaat Moustafa 4.7 percent.

(Reporting by Patrick Werr)

Our latest wrap-up of events in Egypt:

Egypt on the edge after Mursi rebuffs army ultimatum

By Alastair Macdonald and Alexander Dziadosz

CAIRO - President Mohamed Mursi rebuffed an army ultimatum to force a resolution to Egypt's political crisis, saying on Tuesday that he had not been consulted and would pursue his own plans for national reconciliation.

But the Islamist leader looked increasingly isolated with the liberal opposition refusing to talk to him and the armed forces, backed by millions of protesters in the street, giving him until Wednesday to agree to share power.

Newspapers across the political spectrum saw the army's 48-hour deadline as a turning point. "Last 48 hours of Muslim Brotherhood rule," the opposition daily El Watan declared. "Egypt awaits the army," said the state-owned El Akhbar.

The confrontation has pushed the most populous Arab nation closer to the abyss amid a deepening economic crisis two years after the overthrow of Hosni Mubarak, raising concern in Washington, Europe and neighbouring Israel.

Protesters remained encamped overnight in Cairo's central Tahrir Square and protest leaders have called for another mass rally on Tuesday evening to try to force the president out.

Full Article

U.N. human rights office calls on Egypt government to "listen to the demands and the wishes of the Egyptian people".

BREAKING NEWS: Egypt's Foreign Minister has tendered his resignation: Egyptian state news agency

Top U.S. military officer calls Egyptian counterpart

General Martin Dempsey, the top U.S. military officer, called the chief of staff of Egypt's armed forces on Monday morning, a U.S. defense official told Reuters, without providing details on the conversation.

The call by Dempsey, chairman of the Joint Chiefs of Staff, came the same day Egypt's armed forces handed Islamist President Mohamed Mursi a virtual ultimatum to share power, giving feuding politicians 48 hours to compromise or have the army impose its own road map for the country.

(Reporting by Phil Stewart; Editing by Will Dunham)

Egypt opposition says army move not power grab

Egypt's main opposition bloc said on Monday an army statement which gave feuding politicians 48 hours to compromise did not reflect a desire by the military to take power.

The ultimatum, which said the army would impose its own road map if the government and opposition failed to resolve the country's political crisis, showed that the army respected the "principles of democracy and the will of the nation as a source of power", the National Salvation Front said in a statement.

The group of liberals and leftists, which counts Nobel laureate Mohamed ElBaradei among its leaders, called on Egyptians to continue peaceful protests across the country.

(Reporting by Yasmine Saleh; Writing by Alexander Dziadosz; Editing by Alastair Macdonald)

Mursi's choices following the army's ultimatum are limited, as a military intervention would be "an epic defeat":

It would deny [Mursi and his Islamist allies in the Muslim Brotherhood] the chance to govern Egypt that the Brotherhood had struggled 80 years to finally win, in democratic elections, only to see their prize snatched away after less than a year.

- David D. Kirkpatrick, Kareem Fahim and Ben Hubbard for the New York Times.

Reuters translation of full army statement setting 48-hour ultimatum:

Egypt and the whole world witnessed protests yesterday by the great Egyptian people, expressing their view and their will in a peaceful, civil and unprecedented manner. Everyone saw the movement of the Egyptian people and heard their voice with respect and interest. It is inevitable that the people get a response to their action and their demands from all parties that bear some measure of responsibility in these dangerous circumstances surrounding the nation.

The Egyptian Armed Forces, as a main part of the future equation, and from its national and historic responsibility to protect the security and welfare of this nation, confirms the following:

- The Armed Forces will not be part of the political circle or rule, and does not accept surpassing the designated role drawn for it in real democratic thought stemming from the will of the people.

- National security of the nation is facing real danger with the recent developments in the country, which throws responsibilities on all of us, each according to their positions and what needs to be done in order to fend off these risks.

- The Armed Forces felt early on the danger of the current situation as well as the demands of the great Egyptian people. That is why it had set a one-week ultimatum for all political forces to reach consensus and come out of the crisis but the week has passed without any initiative or act. This is what led the people to persistently and autonomously take to the streets in an impressive way, which has raised admiration and attention domestically, regionally and internationally.

- Wasting more time will only lead to more divisions and strife, of which we have been warning and continue to warn.

- The people have suffered and have not found anyone to give them care and kindness, and this presents a moral and psychological burden for the Armed Forces, which finds it necessary for all to stop anything other than embracing the proud people, who have proven their readiness to do the impossible if they feel loyalty and dedication toward them.

- The Armed Forces repeats its call to respond to the people's demands and gives everyone a 48-hour deadline to carry the burden of these historic circumstances that the nation is going through. [The nation] will not forgive or tolerate any shortcomings in bearing their responsibilities.

- The Armed Forces warns everyone that if the demands of the people are not met during the set time period, it will be obligated, due to its national and historical duties, out of respect for the demands of the great Egyptian people, to announce a road map and measures for the future that it would oversee in collaboration with all the loyal national factions and currents, including the youth who were and remain the spark of the glorious revolution, and without sidelining anyone.

- A salute of appreciation and fondness to the faithful and loyal men of the Armed Forces who bore and continue to bear their national responsibility toward the great Egyptian people with all determination, persistence and pride.

God protect Egypt and its great, proud people.

Read the original version in Arabic on Facebook.