* U.S. shares buck global trend, rise on stock upgrades
* U.S. dollar climbs as appetite for risk wanes again
* Oil falls toward $72 a barrel as dollar gains
* Bonds ease as issuance concerns fill data void
(Updates with close of U.S. markets)
By Herbert Lash
NEW YORK, Sept 18 (Reuters) - U.S. stocks rose on corporate
profit hopes, but global equities faltered and crude oil
slipped toward $72 a barrel on Friday, as the U.S. dollar
rebounded from a one-year low on waning risk appetite.
Oil fell as dealers took profits from a 5 percent rally
earlier in the week and the dollar rose as investors trimmed
their positions ahead of holidays in Japan and Singapore next
week. For details see [] and [].
Analysts said a lack of conviction that the global economic
downturn was indeed ending had dragged down oil and some equity
markets on expectations that fuel demand could stay weak.
World equities came under pressure after scaling an
11-month peak as investors took stock of recent hefty gains.
The MSCI all-country world index <.MIWD00000PUS> fell 0.2
percent after touching a high last seen in early October.
But Wall Street rebounded from earlier losses as investors
bet the recovery will be strong enough to sustain corporate
profits. Procter & Gamble <PG.N> and major homebuilders
advanced on positive brokerage comments. []
For the week, all three major U.S. stock gauges rose more
than 2 percent.
"On a short-term basis the market is due for a pause, but
the underlying tone of the market and the economy is positive
at present," said Michael Sheldon, chief market strategist at
RDM Financial in Westport, Connecticut.
Procter & Gamble Co <PG.N> jumped 3.2 percent to $57.32
after a Citigroup upgrade to "buy" on news P&G is ready to cut
prices to regain market share. P&G was the top boost to the
30-stock Dow Jones industrial average. []
The Dow <> closed up 36.28 points, or 0.37 percent, at
9,820.20. The Standard & Poor's 500 Index <.SPX> gained 2.81
points, or 0.26 percent, at 1,068.30. The Nasdaq Composite
Index <> rose 6.11 points, or 0.29 percent, at 2,132.86.
Analysts said the trend for broad dollar weakness was
likely to persist. The dollar has sold off sharply this month
as investors shifted into riskier assets on increasing signs of
a global recovery. The prospect of low U.S. yields and concerns
about the U.S. fiscal deficit have fueled dollar selling.
"Today overall has been a retracement day and a
profit-taking day," said Andrew Busch, a global FX strategist
at BMO Capital Markets in Chicago. "(But) I don't see anything
on the horizon just yet that would take us out of this
sell-the-U.S.-dollar mode."
U.S. crude for October delivery <CLc1> fell 43 cents to
settle at $72.04 a barrel, while London Brent <LCOc1> fell 23
cents to $71.32.
U.S. Treasury debt prices slipped as dealers cut prices to
clear out inventory before underwriting the auction of $112
billion in new notes next week. []
Bond losses widened in thin afternoon trade as participants
left for the weekend and for religious observance. Rosh
Hashana, the Jewish New Year holiday, begins Friday evening.
U.S. government debt sagged on the prospect of heavy
supply. Benchmark 10-year notes <US10YT=RR> fell 26/32 in price
to yield 3.49 percent.
"People looked ahead to next week's supply and there is
still some talk that the Fed will tighten monetary policy
sooner than some people thought and that there is a greater
divergence of opinion on the FOMC than most people thought,"
said Cary Leahey, economist at Decision Economics in New York.
Gold ended lower on profit taking, capping a volatile week
in which the metal set an all-time high of $1,030.80 an ounce
as a steadily falling dollar boosted investment demand.
U.S. December gold futures <GCZ9> settled down $3.20 at
$1,010.30 an ounce in New York. []
European shares pulled back from an 11-month high set on
Thursday as commodity stocks slipped, but Britain's leading
share index logged a sixth straight session of gains, supported
by an early rise on Wall Street.
The FTSEurofirst 300 <> of top European shares closed
0.5 percent lower at 1,006.50.
The FTSE 100 <> in London closed up 0.2 percent at
5,172.89, another 12-month closing high.
Asian stocks retreated from 13-month highs as a conflicting
picture about the strength of a U.S. economic recovery stopped
investors from extending this week's rally.
The Nikkei index <> fell 0.7 percent, breaking a
three-day rally, while the MSCI index of Asia Pacific stocks
traded outside Japan <.MIAPJ0000PUS> dipped 0.6 percent.
(Reporting by Chuck Mikolajczak, Nick Olivari and Pedro
Nicolaci da Costa in New York and Chris Baldwin and Dominic Lau
in London; Writing by Herbert Lash; Editing by James
Dalgleish)
