* World stocks rose on upbeat US data, G20
* Oil prices fall on eased energy concerns
* Euro falls broadly on funding tensions in Europe
By Manuela Badawy
NEW YORK, June 28 (Reuters) - World shares advanced on
Monday after U.S. consumer spending rose more than expected
and oil prices declined as concerns eased about the impact on
supply from a tropical storm in the Atlantic.
Bankers voiced relief after world leaders abandoned a
global bank levy and eased the timetable for new capital
requirements at a G20 summit in Canada, which posed questions
about the forum's effectiveness. []
Investors bought some global equities, especially bank
shares, after members of the U.S. Congress hammered out a
landmark financial regulation package on Friday, removing
uncertainty, and the G20 dropped a 2012 deadline for more
stringent risk-provisioning rules.
The euro fell broadly on potential funding tensions in
Europe. The Swiss franc hit a record high against the single
currency after comments by a Swiss central bank board member
that its strength was not hurting the country's economy.
U.S. stocks also gained, rebounding from losses last week,
after data showed consumer spending rose slightly more than
expected in May. Consumer staples companies' shares were among
the top advancers.
"This week could be a pretty good one after the retreat we
saw last week. People will continue to focus on data,
particularly the Standard & Poor's/Case Shiller home price
indexes tomorrow and U.S. non-farm payrolls on Friday," said
Heino Ruland, strategist at Ruland Research in Frankfurt.
U.S. consumer spending rose slightly more than expected in
May even as savings touched their highest level in eight
months, pointing to a recovery that remains on solid ground.
Consumer spending is being closely watched to gauge the
strength of the economic recovery after a series of reports
suggested growth is slackening. []
A government report on Friday showed consumer spending,
which normally accounts for 70 percent of U.S. economic
activity, rose at a 3 percent pace in the January-March
quarter -- slower than the 3.5 percent the government had
estimated last month.
The Dow Jones industrial average <> was up 17.16
points, or 0.17 percent, at 10,160.97. The Standard & Poor's
500 Index <.SPX> was up 1.22 points, or 0.11 percent, at
1,077.98. The Nasdaq Composite Index <> was up 5.65
points, or 0.25 percent, at 2,229.13.
MSCI's all-country world stock index <.MIWD00000PUS> rose
0.4 percent while more risk-sensitive emerging market
counterpart <.MSCIEF> gained 0.5 percent.
European shares snapped four sessions of losses to close
higher, led by banking shares, with sentiment lifted by upbeat
U.S. consumer spending data. The pan-European FTSEurofirst 300
<> index of top shares climbed 1.3 percent to end at
1,026.68 points.
Barclays <BARC.L>, Deutsche Bank <DBKGn.DE> and BNP
Paribas <BNPP.PA> gained 1.5 percent to 3.6 percent,
benefiting from the G20's decision to adopt a more flexible
timetable for lenders to implement new capital rules.
Oil <CLc1> fell to around $78 a barrel after earlier
touching the highest in almost eight weeks, as concern eased
about whether tropical storm Alex would disrupt supply in the
Gulf of Mexico.
Over the weekend, Alex became the first named storm of the
2010 Atlantic hurricane season, which forecasters expect to be
active. They said the storm could become a hurricane on Monday
or Tuesday.
Spot gold <XAU=> retreated to $1,247.45 an ounce at
midday, down from $1,253.40 in Friday's late New York trading
and off Monday's intraday peak at $1,262.45 as investors took
some profits from bullion's recent run. Wall Street's gains
also took some luster off gold's safe-haven appeal.
EURO'S SLIDE
The euro faces downward pressure in coming days, as the
European Central Bank's one-year loans worth 442 billion euros
expired and the currency failed to make headway after a G20
summit.
Investors favored the Swiss franc, which hit a record high
against the euro and an eight-week peak versus the U.S.
dollar.
Swiss National Bank board member Jean-Pierre Danthine was
quoted in the l'agefi newspaper as saying deflationary risks
have disappeared, and Swiss exports have proven to be robust
despite a stronger currency. []
The euro fell 1.1 percent to a record low 1.3373 franc
<EURCHF=> in morning trading in New York. Danthine's comments
followed the SNB's move to back off a pledge to fight
excessive appreciation of the franc earlier this month.
The euro <EUR=> was down 0.70 percent at $1.2288 per
dollar.
Against the Japanese yen, the dollar <JPY=> was up 0.07
percent at 89.27.
Safe-haven U.S. Treasuries rose, pushing benchmark yields
to one-year lows as speculators, emboldened by a recent batch
of subdued economic data, pushed for a break of key technical
resistance levels.
The benchmark 10-year U.S. Treasury note <US10YT=RR> was
up 19/32, with the yield at 3.044 percent. The 2-year U.S.
Treasury note <US2YT=RR> was up 1/32, with the yield at 0.6289
percent. The 30-year U.S. Treasury bond <US30YT=RR> was up
24/32, with the yield at 4.025 percent.
Bonds, investors' choice during weak economic times, have
benefited from poor data going back to May's discouraging jobs
report. The report added bullish momentum to a rally that
began on worries over Europe's fiscal woes.
(Reporting and writing by Manuela Badawy; Additional
reporting by Harpreet Bhal in London; Angela Moon and Caroline
Valetkevitch, Chris Reese, Vivianne Rodrigues, Robert Gibbons
and Frank Tang in New York, ; Editing by Jan Paschal)
