* Stocks gains on tame US CPI, improved consumer sentiment
* Euro falls against US dollar after Moody's cuts Ireland
* U.S. Treasuries extend gains on benign inflation data
* Oil rises on China growth, better US consumer sentiment
(Updates prices)
By Herbert Lash
NEW YORK, April 15 (Reuters) - Sovereign debt fears pushed
the euro lower on Friday after Moody's cut Ireland's rating to
just above junk, while global stocks rose as encouraging U.S.
economic reports overshadowed disappointing company earnings.
The Moody's downgrade kept the euro zone's debt problems in
focus although the euro was underpinned by expectations of more
rate rises by the European Central Bank and the likelihood that
the Federal Reserve will keep U.S. rates on hold. For details
see: []
"The interest rate differential argument has clearly
supported the euro the last few weeks," said Greg Salvaggio,
senior vice president for capital markets at Tempus Consulting
in Washington.
Oil prices gained, with North Sea Brent crude climbing to
$124 a barrel at one point, after U.S. reports showed tame
inflation and improved consumer sentiment this month.
[]
The reports, along with data that showed industrial
capacity use jumped in March to its highest level since August
2008 and better-than-expected manufacturing activity in New
York state eased worries about slower growth. []
[]
U.S. stocks rose in a broad advance and European stocks
ended slightly higher but posted their first weekly loss in a
month on worries over the euro zone debt crisis.
[] []
"I'm surprised the market is holding up so well, given
Google and Bank of America. But everyone is happy with the
consumer price number," said Randall Warren, chief investment
officer of Warren Financial Service in Exton, Pennsylvania.
"People were afraid that inflation could derail the bull
market, and this data puts that story on hold."
The Dow Jones industrial average <> was up 53.16
points, or 0.43 percent, at 12,338.31. The Standard & Poor's
500 Index <.SPX> was up 4.48 points, or 0.34 percent, at
1,319.00. The Nasdaq Composite Index <> was up 0.67
points, or 0.02 percent, at 2,760.89.
Poor corporate results tempered gains. Bank of America
<BAC.N> reported a steeper-than-expected decline in profits,
and Google <GOOG.O> late Thursday unnerved investors with a
large jump in first-quarter spending. []
[]
The FTSEurofirst 300 <> index of top European shares
closed 0.3 percent higher at 1,131.72 points. For the week,
posted a 1.5 percent loss.
Global stocks as measured by MSCI's all-country world index
<.MIWD00000PUS> rose 0.1 percent, pulled higher by Wall
Street.
Oil rose, lifted by U.S. consumer sentiment and Chinese
economic growth data that outweighed concerns about the strain
of rising fuel costs on the economy. []
U.S. crude futures <CLc1> rose $1.55 to settle at $109.66 a
barrel, marking the third straight day of gains. ICE Brent
crude <LCOc1> for June, the new front-month contract, settled
up $1.45 to $123.45 a barrel in London.
U.S. Treasuries extended gains on the government report
showing underlying inflation pressures were subdued in March.
[]
The benchmark 10-year U.S. Treasury note <US10YT=RR> was up
23/32 in price to yield 3.41 percent.
Analysts and traders are turning increasingly bullish on
the near term outlook for U.S. Treasuries, saying slowing
growth and benign inflation may help further price gains.
[]
Copper closed almost flat as the dollar pared gains, but
investors worried high inflation in China would lead to
monetary tightening and erode demand. []
"The pace of Chinese growth points to further monetary
tightening there, which could weigh on Chinese fuel demand in
the future," said Carsten Fritsch, an analyst at Commerzbank.
(Reporting by Ryan Vlastelica, Nick Olivari and Ellen
Freilich in New York; Christopher Johnson, Rebekah Curtis and
Kirsten Donovan in London; Blaise Robinson in Paris; Writing by
Herbert Lash; Editing by Chizu Nomiyama)
