* U.S. stocks little changed despite new signs of recovery
* U.S. dollar gains as U.S. durables weigh on risk trades
* Oil prices slip to near $71 on rising U.S. stockpiles
* U.S. government debt rises after solid auction demand
(Updates with close of U.S. markets)
By Herbert Lash
NEW YORK, Aug 26 (Reuters) - U.S. stocks closed near
break-even on Wednesday despite fresh signs of a modest
economic recovery, while rising U.S. crude stockpiles led oil
prices to extend sharp losses from the previous session.
News that China would act to restrict redundant investments
underscored concerns about the global economy and triggered
safe-haven buying of the U.S. dollar. For details:
[]
Gold futures ended a tad lower, helped by the dollar's
gains, while copper was little changed, weighed down by Chinese
constraints on industrial overcapacity. []
[]
Investors remained cautious after a decent run-up in equity
markets, leaving stocks to edge up on the day even after solid
reports on U.S. housing and new orders of durable goods.
"It seems like traders have lost the momentum after a huge
upward move and they are finally taking a breather," said Fred
Dickson, market strategist at D.A. Davidson & Co in Lake
Oswego, Oregon.
The MSCI all-country world index <.MIWD00000PUS> rose for
six straight session through Tuesday, gaining 5.3 percent over
the stretch. The index was down 0.4 percent on Wednesday, but
still up about 4 percent in August.
The Dow Jones industrial average <> closed up 4.23
points, or 0.04 percent, at 9,543.52. The Standard & Poor's 500
Index <.SPX> added 0.12 points, or 0.01 percent, to 1,028.12.
The Nasdaq Composite Index <> ended up 0.20 points, or
0.01 percent, at 2,024.43.
Orders for long-lasting U.S. manufactured goods registered
the biggest advance since July 2007, but excluding
transportation goods, orders for durables were slightly below
expectations.
Slippage among global stocks that climbed to 10-month highs
this week boosted money flows into less risky assets, such as
European government bonds, which also gained from some modest
month-end buying, traders said. []
Economic data in Europe showed further signs of recovery,
as did a report showing U.S. new home sales jumped in July to
their fastest pace in 10 months.
"The market has come a long way, and the economics are
still supportive," said Georgina Taylor, an equity strategist
at Legal & General Investment Management.
"We're just seeing a little profit taking. Nothing has been
derailed. Housing data is improving. The only area of concern
is consumer spending."
U.S. stocks seesawed after market sell-offs on Monday and
Tuesday, leading investors to turn skittish.
Oil pared early gains to drop to almost $71 a barrel,
extending losses from the previous session, on the rise in U.S.
stockpiles of crude. []
The U.S. Energy Information Administration (EIA), the
statistical arm of the Department of Energy, reported on
Wednesday that crude stocks in the world's largest energy
consumer rose by 200,000 barrels last week.
U.S. crude for October <CLc1> fell 62 cents to settle at
$71.43 a barrel, after sliding $2.32 on Tuesday. Brent crude
<LCOc1> fell 17 cents to $71.65.
U.S. Treasuries edged higher as solid demand at a $39
billion auction of five-year government debt offset data
suggesting the moribund U.S. housing market was stabilizing.
[]
Treasuries held up well in the face of a large sale of
five-year debt, with the auction results and placid market
reaction suggesting the government was having no problems
financing a burgeoning national debt.
"For such a large slug of money to be taken down in a quiet
time of the summer it's pretty noteworthy. It's pretty strong
on the whole," said George Goncalves, head of fixed income
rates strategy at Cantor Fitzgerald LP in New York.
The benchmark 10-year Treasury note <US10YT=RR> was last
trading up 1/32 on the day, yielding 3.44 percent.
U.S. December gold futures <GCZ9> settled down 20 cents at
$945.80 an ounce in New York.
Japan's Nikkei share average closed up 1.4 percent <>
to a fresh 10-month high, while the MSCI index of Asia Pacific
stocks traded outside Japan rose 0.3 percent <.MIAPJ0000PUS>.
(Reporting by Richard Valdmanis, Angela Moon, Stephen C.
Johnson and Burton Frierson in New York; Brian Gorman, Kirsten
Donovan and Simon Falush in London; writing by Herbert Lash)
