* Stocks lifted by better-than-expected U.S. housing data
* U.S. dollar, yen fall as investors' risk appetite soars
* Oil rises on gasoline rally, euphoria on Wall Street
* Government debt falls on record looming supply, stocks
(Updates with U.S. markets activity, changes dateline;
previous LONDON)
By Herbert Lash
NEW YORK, July 23 (Reuters) - Crude oil rose and global
stocks jumped about 2 percent on Thursday after improving U.S.
home sales and another batch of strong corporate results
suggested the world's largest economy is stabilizing.
The Dow industrials rose above the key 9,000 mark in
afternoon trading, while European shares closed at an
eight-month high. Asian stocks earlier in the session had
climbed to a 10-month high.
The dollar weakened against the euro and the yen fell
broadly as risk appetite grew on Wall Street's rally and rising
commodity prices. <For related news click []>.
Gold held near six-week highs and copper reversed losses to
hit a fresh 9-month high. [] [].
But the surge in stocks eroded demand for safe-haven
government debt, which fell in price as investors worried about
a record-breaking slate of U.S. debt auctions next week.
[]
"The economy does look like it's gradually recovering after
a very deep recession," said Zach Pandl, an economist at Nomura
Securities International in New York. "We're slowly turning the
corner and it looks like the equity market is responding to
that."
U.S. stocks were spurred by stronger second-quarter
corporate earnings and outlooks. Results from bellwethers,
including AT&T Inc <T.N> on Thursday and eBay Inc <EBAY.O> a
day earlier, ignited a rally that took the benchmark S&P 500
index to its highest level in 2009.
The Nasdaq was on track to post its 12th-straight day of
gains.
U.S. existing home sales in June notched their third
monthly rise, a sign that the housing industry was slowly
healing. New jobless benefits claims, however, rose last week.
[]
In early afternoon, the Dow Jones industrial average <>
was up 184.02 points, or 2.07 percent, to 9,065.28. The
Standard & Poor's 500 Index <.SPX> rose 22.51 points, or 2.36
percent, to 976.58. The Nasdaq Composite Index <> advanced
46.85 points, or 2.43 percent, to 1,973.23.
The FTSEurofirst 300 <> index of top European shares
ended 2 percent higher at 908.15 points after touching 909.07,
the highest since early November. It is the longest winning
streak for the index since late 2006.
The dollar fell against a basket of major currencies, with
the U.S. Dollar Index <.DXY> down 0.17 percent at 78.572.
The euro <EUR=> rose 0.31 percent at $1.4252, while against
the yen, the dollar <JPY=> was up 1.42 percent at 94.92.
"All in all, the data that will further encourage the
positive risk appetite tone, with bond slippage and slightly
softer dollar tone seen today," said Alan Ruskin, chief
international strategist at RBS Global Banking and Markets in
Greenwich, Connecticut.
"That equities finally look to be making headway into a new
price zone will further stir the risk positive trade."
In Europe, bunds tracked a decline in U.S. Treasuries after
the U.S. Treasury Department announced a record volume $115
billion of supply for next week. []
The benchmark 10-year U.S. Treasury note <US10YT=RR> was
down 29/32 in price to yield 3.66 percent. The 2-year U.S.
Treasury note <US2YT=RR> was down 6/32 in price to yield 1.04
percent.
U.S. light sweet crude oil <CLc1> rose $1.72 to $67.12 a
barrel.
Spot gold prices <XAU=> rose $6.30 to $956.70.
The MSCI index of Asia Pacific shares outside Japan
<.MIAPJ0000PUS> rose to 1.25 percent, furthering an earlier
rise in Asia. Japan's Nikkei share average <> ended 0.7
percent
(Reporting by Rodrigo Campos, Gertrude Chavez-Dreyfuss,
Richard Valdmanis, Burton Frierson in New York; Harpreet Bhal
and George Matlock in London; writing by Herbert Lash; Editing
by Kenneth Barry)
