* Better-than-expected US retail sales boost risk appetite
* US stocks at fresh 2009 highs as materials sector gains
* Oil prices jump 3 pct to near $71 per barrel
* Dollar, Treasuries fall as safe-haven appeal dimmed
(Updates to U.S. markets close)
By Walter Brandimarte
NEW YORK, Sept 15 (Reuters) - Surprisingly robust U.S.
retail sales stoked investors' appetite for risk on Tuesday,
driving up stocks and oil prices while supporting comments from
Fed Chairman Ben Bernanke that the U.S. recession is likely
over.
The strong data reduced the safe-haven appeal of Treasuries
and the dollar, pulling yields of U.S. government debt back
from two-month lows and sending the greenback lower against
other major currencies.
U.S. retail sales jumped 2.7 percent in August, the fastest
pace of growth in 3-1/2 years and outpacing analysts'
expectations for a 2.0 percent rise. For details, see
[]
U.S. consumer spending accounts for about two-thirds of the
economy.
"The retail sales number shows more strength for consumers
than we were thinking," said Peter Kenny, managing director at
Knight Equity Markets in Jersey City, New Jersey. "The numbers
are good for the market."
Data showing that New York state manufacturing activity
touched a near two-year high and a report showing prices
received by U.S. producers rose faster than expected last month
also fueled investor optimism about the economy.
Federal Reserve Chairman Ben Bernanke, speaking at the
Brookings Institution in Washington, on the anniversary of the
collapse of Lehman Brothers, said the U.S. recession "is very
likely over." []
Stock market gains in New York were tempered by
disappointing quarterly results from electronics retail chain
Best Buy Co Inc <BBY.N> as well as reports by some big
financial firms of rising credit card delinquencies.
"The retail sales data is another positive for those
looking for an economic rebound, but the defaults are a wake-up
call for those expecting a V-shaped recovery," said Elliot
Spar, options market strategist at Stifel Nicolaus & Co in
Shrewsbury, New Jersey.
The Dow Jones industrial average <> closed up 56.61
points, or 0.59 percent, at 9,683.41, while the Standard &
Poor's 500 Index <.SPX> edged up 3.29 points, or 0.31 percent,
at 1,052.63. The Nasdaq Composite Index <> gained 10.86
points, or 0.52 percent, to 2,102.64.
Best Buy shares slid 5.17 percent to $38.32, and
supermarket operator Kroger Co <KR.N> lost 7.5 percent to
$20.46 after reporting disappointing earnings.
JPMorgan Chase & Co <JPM.N> saw its shares slip 1.3 percent
after reporting worsening consumer credit. []
In Europe, the FTSEurofirst 300 <> index of top
shares closed 0.14 percent higher at 992.37 points, gaining
ground for the seventh time in eight sessions. The robust U.S.
retail sales rekindled hopes of a speedy economic recovery, and
banking stocks paced the gains.
"Good macro figures are piling up," said Jacques Henry,
analyst at Louis Capital Markets, in Paris.
"There has been no negative signal on the macro front in a
while, and the economic recovery is happening quickly.
Long-only investors are coming back en masse," he said.
Emerging stock markets were also on the rise, with the
benchmark MSCI stock index <.MSCIEF> up 1.06 percent.
The MSCI's all-country world stock index <.MIWD00000PUS>
rose 0.25 percent, resuming a seven-session winning streak that
had been interrupted by Monday's losses.
Oil prices also soared on the retail data and Bernanke's
comments.
U.S. crude for October delivery <CLc1> settled up $2.07, or
3 percent, at $70.93 a barrel. October Brent <LCOc1>, which was
pressured ahead of the contract's Tuesday expiration, fell 19
cents to $67.25 a barrel.
Traders have been looking to equities markets and broader
economic data for signs of a turnaround that could bolster
flagging oil demand.
"Once the S&P (500 index) firmed and when Bernanke said
recession was near an end, it seemed to send crude back up
above $70," said Gene McGillian, analyst at Tradition Energy in
Stamford, Connecticut.
DOLLAR, TREASURIES PRICES DOWN
Meanwhile, Treasury debt prices and the U.S. dollar
weakened as the gains in global stock markets reduced their
traditional appeal as a safe haven.
The ICE Futures U.S. Dollar Index <.DXY>, which measures
the greenback against a basket of six major currencies, dipped
0.3 percent after earlier touching its lowest since September
2008.
The euro <EUR=> firmed 0.28 percent to $1.4664 from a
previous session close of $1.4623, hovering 2009 highs. .
Against the Japanese yen, the dollar <JPY=> was up 0.18 percent
at 91.08 from a previous session close of 90.920.
The benchmark 10-year U.S. Treasury note <US10YT=RR> was
down 7/32, with the yield at 3.4485 percent from the previous
session's close of 3.424 percent. The 30-year U.S. Treasury
bond <US30YT=RR> declined 19/32, with the yield at 4.2638
percent from 4.23 percent late on Monday.
