* World stocks rise as Wall St barely budges on mixed data
* U.S. dollar falls to month low vs euro; sterling rises
* Oil drops 1 pct as slip in consumer confidence weighs
* Long-dated government debt climbs on mixed signals
(Updates with close of U.S. markets)
By Herbert Lash
NEW YORK, March 12 (Reuters) - Global stocks rose on Friday
despite mixed signals from the U.S. economy, while strong euro-
zone economic data dragged the dollar down to a month low
versus the euro and eased aversion toward the single currency.
An unexpected drop in U.S. consumer confidence led Wall
Street to end little changed and pressured commodities, which
ended their worst week in a month even as the dollar dropped
sharply. A weak dollar usually boosts demand for commodities.
European and global stocks, as measured by the benchmark
indexes, ended at almost two-month highs, but U.S. stocks
struggled a day after the S&P 500 hit a 17-month closing high.
A slight decline in U.S. consumer sentiment in early March
offset data showing U.S. retail sales rose unexpectedly last
month, leading Wall Street to gain in early trade.
News that euro-zone industrial output in January recorded
its biggest monthly gain on record, while figures for December
were revised sharply upward, gave European equities an initial
boost. They extended gains on the U.S. retail sales data.
"The prevailing opinion is the market is going to continue
to work higher so people don't want to be selling things they
expect three to six months from now will be higher," said
Michael James, senior trader at Los Angeles investment bank
Wedbush Morgan.
MSCI's all-country index <.MIWD00000PUS> rose 0.4 percent
to its highest since Jan. 19, the last day the FTSEurofirst 300
<> index of top European shares closed higher.
The Dow Jones industrial average <> closed 12.85 points
higher, or 0.12 percent, to 10,624.69. The Standard & Poor's
500 Index <.SPX> slipped 0.25 point, or 0.02 percent, to
1,149.99. The Nasdaq Composite Index <> fell 0.8 point, or
0.03 percent, to 2,367.66. []
The upbeat euro zone data gave traders a reason to cover
near-record euro short positions, or bets that the euro had
room to fall, to prevent losses.
Industrial production in the 16-country currency bloc
jumped 1.7 percent from December, the steepest gain since the
data series began in January 1990. []
The short-covering pushed the euro up 0.75 percent at
$1.3762 <EUR=>, after hitting session peaks just shy of $1.38,
the highest since Feb. 11, according to Reuters data.
The dollar was down against a basket of major currencies,
with the U.S. Dollar Index <.DXY> off 0.65 percent at 79.803.
Against the yen, the dollar <JPY=> was down 0.07 percent at
90.45.
Oil slipped more than 1 percent toward $81 a barrel after
the survey of U.S. consumer confidence reignited investor
concerns about U.S. energy demand. []
U.S. crude for April delivery <CLc1> fell 87 cents to
settle at $81.24, a 26-cent decline for the week. Earlier, the
contract had climbed to $83.16, the highest since Jan. 11.
In London, Brent crude <LCOc1> fell 89 cents to settle at
$79.39.
U.S. April gold futures <GCJ0> settled down $6.50 at
$1,101.70 an ounce in New York.
Longer-dated U.S. Treasury prices rose over doubts about
the pace of economic recovery before next week's Federal
Reserve policy meeting. []
The benchmark 10-year U.S. Treasury note <US10YT=RR> was up
6/32 in price to yield 3.7025 percent.
(Reporting by Caroline Valetkevitch, Gertrude Chavez-Dreyfuss,
Ellen Freilich and Barani Krishnann in New York; Writing by
Herbert Lash; Editing by Diane Craft)
