* Global stocks hover near break-even; Europe at new high
* Oil trades near $79 a barrel on Iran concerns, cold snap
* Dollar gains vs euro and yen; slips vs high-yielders
* Bonds make slight gains ahead of 5-year U.S. note sale
(Updates with U.S. markets, changes byline, dateline,
previous LONDON)
By Herbert Lash
NEW YORK, Dec 29 (Reuters) - Global stocks hovered near
break-even on Tuesday as European shares notched a new closing
2009 high, while the U.S. dollar recovered from early losses
against the euro and traded higher in thin, year-end trade.
Oil briefly rose above $79 a barrel to a fresh five-week
high, supported by expectations of colder U.S. weather and
concerns over political developments in Iran. []
U.S. Treasuries prices made slight gains after data showed
a rise in home prices stalled in October, adding to the
safe-haven appeal of U.S. government debt ahead of a sale of
five-year Treasury notes. []
But gains in regional European equity markets undermined
the safe-haven allure of euro zone government debt, pushing
prices, which move in the opposite direction of yields, lower.
Ten-year Bund yields stayed near six-week highs.
[]
Traders and analysts warned against drawing too many
conclusions from intra-day moves this week, noting that a few
large trades can alter a market's direction.
"The dollar is struggling to find a direction at the end of
the year," said John Doyle, foreign exchange strategist at
Tempus Consulting in Washington. "There is a lack of liquidity
and any major buyer can move the market."
A three-month high in December of the Conference Board's
index of U.S. consumer confidence bolstered optimism over
economic recovery, but prices in the hard-hit housing sector
stalled in October, breaking five months of gains.
[]
The two reports left U.S. stocks little changed, while
European shares ticked higher in thin trade, hitting their
highest close in 15 months for the fourth consecutive session.
[]
MSCI's all-country world index <.MIWD00000PUS> rose within
a point of a fresh 2009 before paring gains to trade just over
break-even.
Miners were among the top gainers in Europe as copper
prices hit their highest level in more than 15 months, lifted
by a strike threat in one of the world's top copper mines in
Chile.
The FTSEurofirst 300 <> index of leading European
shares closed 0.3 percent higher at 1,046.89 points, rising for
a sixth straight session and a fourth-straight closing high.
The S&P/Case-Shiller composite index of home prices in 20
metropolitan areas was unchanged in October, falling short of
expectations for a rise of 0.2 percent. The news sent the Dow
Jones U.S. Home Construction index <.DJUSHB> down 0.8 percent.
"It's good to see confidence higher than expected, but
you'll need improvement in home prices if you want to see the
financial and broader market improve over the next six to 12
months," said Chad Morganlander, portfolio manager at Stifel,
Nicolaus & Co in Florham Park, New Jersey.
After midday, the Dow Jones industrial average <> was
up 8.08 points, or 0.08 percent, at 10,555.16. The Standard &
Poor's 500 Index <.SPX> was down 1.18 points, or 0.10 percent,
at 1,126.60. The Nasdaq Composite Index <> was down 3.73
points, or 0.16 percent, at 2,287.35.
U.S. crude for February delivery rose as high as $79.39 a
barrel after the U.S. home price data for October was released
and showed no change from September. But prices then eased back
in thin trade.
Worries about Iran put upward pressure on crude prices.
"Iran is clearly a hot point, because it is such a major
producer. Just remember how prices went up recently when
soldiers from Iran went into Iraq and occupied an oilfield,"
said oil analyst Christophe Barret at Calyon.
U.S. light sweet crude oil <CLc1> rose 7 cents to $78.84 a
barrel.
The Reuters-Jefferies CRB index <.CRB> hit its highest
levels since mid-October 2008 after tracking a steady rise in
crude oil prices.
The euro was last down 0.24 percent against the dollar at
$1.4347 <EUR=>, a reversal of gains earlier in the New York
session. The dollar was up 0.43 percent against the yen at
91.98 yen <JPY=> after going as high as 92.02 yen.
The dollar was up against a basket of major currencies,
with the U.S. Dollar Index <.DXY> up 0.24 percent at 77.822.
Gold was little changed at around $1,103 an ounce due to
low investor liquidity, but dollar weakness and expectations of
stronger buying in the new year were set to support bullion
prices. []
Asian stocks rose on growing investor optimism about the
global economy. Japan's Nikkei average <> rose 1 percent
to its highest in four months on data showing factory output
rising for the ninth straight month in November
The MSCI index of Asia Pacific stocks outside Japan
<.MIAPJ0000PUS> rose just over 0.6 percent in thin trade.
(Reporting from Ryan Vlastelica, Nick Olivari and Chris Reese
in New York; Chris Baldwin, Dominic Lau, Kirsten Donovan and
Jonathan Saul in London; writing by Herbert Lash; Editing by
Andrew Hay, herb.lash@reuters.com;
Reuters Messaging: herb.lash.reuters.com@reuters.net; +1 646
223 6019))
