* Unexpected U.S. sentiment drop dulls surprise retail
sales
* Euro gains vs yen on upbeat U.S. retail sales data
* Oil trims gains from weaker dollar, demand prospects
* U.S. stocks turn south after U.S. consumer survey
(Updates with open of U.S. markets; changes dateline, previous
LONDON)
By Herbert Lash
NEW YORK, March 12 (Reuters) - Global stocks trimmed gains
on Friday after U.S. consumers expressed concerns about the job
market, while the U.S. dollar fell to a near one-month low
against the euro on strong euro zone economic data.
Equity markets initially climbed higher after data on both
sides of the Atlantic bolstered hopes for economy recovery.
Euro zone industrial output in January recorded its biggest
monthly gain on record and figures for December were sharply
revised upward. In the United States, retail sales unexpectedly
rose in February despite inclement weather that was expected to
curb shopping. For details see:[] []
The euro rose as much as 1 percent against the yen on the
Japanese currency's weakness following the U.S. retail sales
data.
Oil pared gains that had pushed prices toward $83 a barrel
at one point on the softening dollar and as views emerged that
energy demand growth would continue in the developing world.
However, a weak reading of U.S. consumer sentiment in early
March, which showed Americans were less positive about the job
outlook, pulled early U.S. stock gains below the water mark.
"It's more important to watch what consumers do rather than
what they say. Certainly there is a little different tone
between the retail sales and the confidence figures," said
Kevin Flanagan, chief fixed-income strategist at Morgan Stanley
Smith Barney in Purchase, New York.
The reading of U.S. consumer confidence stayed close to its
six-month average and was significantly above the year-ago
level, according to Thomson Reuters/University of Michigan's
Surveys of Consumers. []
Analysts polled by Reuters had forecast U.S. retail sales
would slip 0.2 percent in February, but sales rose 0.3 percent
as consumers bought an array of goods, the Commerce Department
said.
"The headline is certainly impressive and kind of throws a
giant snowball at the theory that the weather was going to be
an impediment to retailers," said David Resler, chief economist
at Nomura Securities International in New York.
He warned about surmising too much from the data, but said
"it is a part of a general improvement in the economy that is
insuring that we are going to stay on a growth path here."
MSCI's all-country index <.MIWD00000PUS> gained almost 0.3
percent shortly after the U.S. market opened.
European shares trimmed some gains after U.S. equities
turned negative following the release of the U.S. survey on
consumer sentiment. []
The Dow Jones industrial average <> was down 9.82
points, or 0.09 percent, at 10,602.02. The Standard & Poor's
500 Index <.SPX> was down 2.34 points, or 0.20 percent, at
1,147.90. The Nasdaq Composite Index <> was down 7.00
points, or 0.30 percent, at 2,361.46.
The benchmark 10-year U.S. Treasury note <US10YT=RR> was
unchanged with the yield at 3.7272 percent.
The dollar was down against a basket of major currencies,
with the U.S. Dollar Index <.DXY> off 0.40 percent at 80.002.
The euro <EUR=> was up 0.52 percent at $1.373 and against
the yen, the dollar <JPY=> was up 0.29 percent at 90.77.
U.S. light sweet crude oil <CLc1> fell 2 cents, or 0.02
percent, to $82.09 per barrel, and spot gold prices <XAU=>
fell $2.05, or 0.18 percent, to $1107.00.
(Reporting by Ryan Vlastelica, Nick Olivari, Richard Leong in
New York; Atul Prakash, Chris Baldwin, Jan Harvey and Pratima
Desai in London; writing by Herbert Lash; Editing by Dan
Grebler)
