GLOBAL MARKETS-Shares hold gains on mixed data, commodities drop

                                
   * U.S. stocks flat, undermined by weak energy shares
                                
 * Stronger U.S. dollar weighs on commodity prices
                                
 * ECB leaves rates unchanged, unveils more exit strategies
 (Updates U.S. markets)
                                
 By Daniel Bases
                                
 NEW YORK, March 4 (Reuters) - Weak energy shares undermined
some upbeat U.S. economic data, leaving Wall Street stocks flat
on Thursday while the European Central Bank's decision to leave
interest rates unchanged tugged the euro lower.
                                
 The U.S. dollar's rise, combined with rising U.S. crude oil
stockpiles, fed the selling of energy-related assets. Commodity
prices in general suffered from the greenback's strength.
                                
 Shares of Exxon Mobil <XOM.N> fell 0.35 percent while
Chevron <CVX.N> lost 0.33 percent, putting a drag on the Dow
Jones industrials <.DJI>.
                                
 Share prices in Europe managed to hold onto gains before
the close. For more see [ID:nLDE6232DH].
                                
 Earlier, U.S. retailers posted their strongest monthly
sales performance in February since just before the recession
started in 2007, as leaner inventories resulted in more sales
at full price. [ID:nN04258755]
                                
 A drop in U.S. weekly jobless claims added to the early
buying. However, the gains for both stocks and the U.S. dollar
were capped by an unexpected plunge in contracts for pending
sales of previously owned U.S. homes in January.
[ID:nN04154147] [ID:nN04232780]
                                
 In addition, the ECB unveiled new measures for removing the
extraordinary stimulus it provided to the economy, undermining
the boost the euro received from the market's strong demand for
Greece's 10-year bond sale, seen as a crucial step in
addressing its debt problems. [ID:nLDE6231VO] [ID:nFAE005616]
                                
 Although the ECB took a small step toward unwinding some
extraordinary support for the economy, it left much of its cash
buffer for banks in place. [ID:nLDE6230PC] [ID:nLDE6231U3]
                                
 "The main take-away is that Mr Trichet's comments so far
are consistent with the view that the (ECB) will keep rates at
record lows perhaps longer than its U.S. counterpart," said Joe
Manimbo, a currency trader at Travelex Global Business Payments
in Washington. "That's putting some downward pressure on the
euro."
                                
 In midday U.S. trade, the euro <EUR=> was down 0.90 percent
at $1.3575 from a previous session close of $1.3698, while the
dollar was up 0.76 percent at 89.10 yen <JPY=>.
                                
 "Pending home sales is a negative for the U.S., though a
lot of other factors are positive," said Meg Browne, senior
currency strategist at Brown Brothers Harriman in New York. "It
is a sign that the housing market is losing some momentum."
                                
 At 12:55 p.m. (1755 GMT) the Dow Jones industrial average
<.DJI> traded up 17.23 points, or 0.17 percent, at 10,413.99.
The Standard & Poor's 500 Index <.SPX> rose 0.70 points, or
0.06 percent, at 1,119.49. The Nasdaq Composite Index <.IXIC>
gained 0.42 points, or 0.02 percent, at 2,281.10.
                                
 The pan-European FTSEurofirst <.FTEU3> index of leading
shares closed up 0.1 percent at 1,036.44, off an earlier
six-week high.
                                
 U.S. light sweet crude oil <CLc1> fell 49 cents, or 0.61
percent, to $80.38 per barrel, and spot gold prices <XAU=> fell
$6.30, or 0.55 percent, to $1,132.80.
                                
 DATA
                                
 The United States reported a fall in the number of new
applications for unemployment benefits last week while
productivity was stronger than initially thought in the fourth
quarter.
                                
 That led to a drop in prices for U.S. Treasuries, only to
see those losses pared by the pending homes data.
                                
 Benchmark 10-year U.S. Treasuries regained ground, rising
4/32 of a point in price, yielding 3.61 percent <US10YT=RR>. In
Europe, Bund futures hit a session high after the housing data
surprise. March Bund futures <FGBLH0> settled 21 ticks higher
at 124.29, having earlier fallen to 123.87, while the 10-year
cash yield <EU10YT=RR> eased 1.2 basis points to 3.128
percent.
                                
 The dollar held its gains against a basket of major trading
currencies, with the U.S. Dollar Index <.DXY> was up 0.72
percent at 80.551 from a previous session close of 79.977.
                                
 Data showed the euro zone economy barely grew in the last
three months of 2009 compared with the previous quarter, with
the only driver being exports, which benefit from a weak euro.
                                
 RATES
                                
 After the ECB left its benchmark interest rate unchanged at
a record low 1 percent for a 10th consecutive month, the bank's
president, Jean-Claude Trichet, said at a news conference, "The
latest information has also confirmed that the economic
recovery in the euro area is on track, although it is likely to
remain uneven."
                                
 Earlier, Greece's ability to place a 5 billion euro 10-year
syndicated bond was welcome news. It came a day after the
government announced draconian measures to help put its
finances in order.
                                
 Athens needs to borrow 53 billion euros ($72 billion) this
year to repay existing debt and cover its huge budget deficit.
The cost will be crippling if it has to go on offering such a
high premium over benchmark German bonds.
 (Additional reporting by Natsuko Waki and Ian Chua in London,
Lucia Mutikani in Washington and Vivianne Rodrigues in New
York; Editing by James Dalgleish)