* Wall Street flat after retail sales, sentiment data
* Safe-haven bonds pare some gains on sentiment survey
* Dollar gains vs yen, slips a tad vs euro after data
* Oil pares losses, trades near $75 after U.S. data (Adds open of U.S. markets; change byline dateline; previous LONDON)
By Herbert Lash and Dominic Lau
NEW YORK/LONDON, June 11 (Reuters) - World stocks marched higher on Friday after a strong reading of U.S. consumer sentiment eased jitters over an unexpected drop in U.S. retail sales that had lifted the safe-haven price of bonds and gold.
The U.S. dollar edged up against the yen and U.S. stocks trimmed losses after consumer sentiment improved in early June to its strongest level since March 2008, the Thomson Reuters/University of Michigan's Surveys of Consumers said. For details see: [
]The report lifted the mood of investors after data showing poor U.S. retail sales in May raised doubts about the strength of recovery and took the wind out of four-day relief rally in world stocks.
"It's a good number and could provide reassurance after the retail sales number, which was particularly weak," Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts, said about the consumer survey.
Oil prices had slipped below $74 a barrel and copper retreated from one-week highs on news of the retail sales data, but crude prices pared some losses to trade above $75 a barrel. Benchmark copper for three-month delivery <CMCU3> reversed course to trade up about 1 percent in London.
MSCI's all-country world equity index <.MIWD00000PUS> rebounded to trade 0.5 percent higher, helped by a rally in European markets.
But the Dow and broad-market S&P 500 hovered near break-even, even as the technology-rich Nasdaq rose.
"We had a nice one-day advance yesterday, and this will kind of relieve some of the pressures," said Steve Goldman, market strategist at Weeden & Co. in Greenwich, Connecticut.
"I think the (stock) market is looking for reasons to stabilize, and this provides some of that," said Goldman.
The Dow Jones industrial average <
> was down 4.61 points, or 0.05 percent, at 10,167.92. The Standard & Poor's 500 Index <.SPX> was up 0.98 points, or 0.09 percent, at 1,087.82. The Nasdaq Composite Index < > was up 14.83 points, or 0.67 percent, at 2,233.54.Bond prices trimmed some of their earlier gains after the retail sales report.
The benchmark 10-year U.S. Treasury note <US10YT=RR> was up 11/32 in price to yield 3.28 percent. It had earlier traded up 18/32.
Markets earlier were buoyed after Belgium, Portugal and Spain found good demand for their bonds this week. Italy also carried out a successful sale on Friday, easing immediate concerns about funding problems on the euro zone periphery and boosting appetite for the euro <EUR=> and banking shares.
Investors also found optimism in China's growth, even though fresh data showed inflation in the world's third-largest economy quickened to a 19-month high in May while its factory output and capital spending moderated. [
]The dollar rose to 91.66 yen <JPY=>, while the the euro <EUR=> was up 0.02 percent at $1.211.
Against the yen, the dollar <JPY=> was up 0.33 percent at 91.66.
U.S. light sweet crude oil <CLc1> fell 53 cents, or 0.7 percent, to $74.95 a barrel.
Spot gold prices <XAU=> rose $6.35, or 0.52 percent, to $1,223.60.
Earlier in Asia, the MSCI index of Asia Pacific ex-Japan stocks <.MIAPJ0000PUS> rose nearly 1.6 percent. Japan's Nikkei average <
> climbed 1.7 percent, helped by a halt in the yen's advance against the euro <EURJPY=R>. (Reporting by Steven C. Johnson and Burton Frierson in New York; Emma Farge, Jan Harvey and Michael Taylor in London and Lucia Mutikani in Washington; writing by Herbert Lash)