* U.S. stocks end higher on economic data, Buffett's view
* World stocks gain 0.7 pct, set for 3rd monthly rise
* Dollar at 3-1/2-month low ahead of Fed chief's testimony
* Brent crude oil dips for day, but up 10.7 pct for month
(Updates to U.S. markets' close)
By Caroline Valetkevitch
NEW YORK, Feb 28 (Reuters) - U.S. stock markets rose on
Monday on encouraging economic data and after optimistic
comments from billionaire investor Warren Buffett, while the
dollar hit a 3-1/2-month low against a basket of major
currencies.
World equities, measured by the MSCI All-Country World
Index <.MIWD00000PUS>, added 0.8 percent, after rising 1.1
percent on Friday. The global index is up 2.4 percent this
month, on track for a third straight monthly rise.
The dollar slid against a currency basket ahead of U.S.
Federal Reserve Chairman Ben Bernanke's testimony before
congressional committees on Tuesday and Wednesday.
Brent crude oil futures edged lower for the day as more
production from Saudi Arabia helped offset supply disruptions
due to turmoil in Libya.
For the month, though, Brent crude oil prices surged 10.68
percent -- the biggest percentage gain since May 2009, when
prices soared 29 percent. It touched a 29-month high near $120
a barrel last week.
On Wall Street, investors' mood got a lift from some
upbeat economic data and a positive outlook from Buffett.
An index of U.S. Midwest business activity rose
unexpectedly in February, according to the Institute for
Supply Management-Chicago, while U.S. personal income shot up
1 percent in January, Commerce Department data showed.
Buffett, chairman of Berkshire Hathaway Inc <BRKa.N>, told
shareholders in his widely read annual letter that he sees the
need for "major acquisitions," a sign stocks may be cheap.
Berkshire's Class B <BRKb.N> shares rose 2.8 percent to
$87.28. [] []
Ventas Inc <VTR.N> said it will buy Nationwide Health
Properties <NHP.N> for $5.8 billion in a stock deal that
strengthens its position as the biggest U.S. owner of senior
housing. NHP shares jumped 9.7 percent to $42.74.
"We expect M&A activities to dramatically accelerate this
year," said Fred Dickson, chief market strategist at D.A.
Davidson & Co in Lake Oswego, Oregon.
S&P 500 UP 3.2 PCT FOR MONTH
James Bullard, president of the St. Louis Federal Reserve,
also gave stock investors reasons to be optimistic with his
comments that the U.S. economy should do well in 2011 and oil
prices are not currently a drag on the recovery.
U.S. stocks racked up a third month of gains. The
benchmark Standard & Poor's 500 <.SPX> rose 3.2 percent for
the month, while the blue-chip Dow Jones industrial average
gained 2.8 percent and the Nasdaq added 3 percent.
The market has defied expectations for a major correction,
despite rallying since September. The S&P 500 is up 26 percent
since the start of September.
The dollar, however, came under pressure on expectations
that Fed Chairman Ben Bernanke, in testimony to congressional
committees later this week, will stick with his recent
economic assessment that the recovery is strengthening, but
not enough to bring about a significant improvement in the
jobs market.
The Dow Jones industrial average <> gained 95.89
points, or 0.79 percent, to end at 12,226.34. The S&P 500
advanced 7.34 points, or 0.56 percent, to finish at 1,327.22.
The Nasdaq Composite Index <> added 1.22 points, or 0.04
percent, to close at 2,782.27.
Limiting the Nasdaq's advance was a downgrade by UBS of
online retailer Amazon Inc <AMZN.O> to "neutral" from "buy,"
due to higher costs. Amazon was down 2.2 percent at $173.36.
VOLATILE OIL AND GOLD ABOVE $1,400
Brent crude oil prices were volatile, following a spike
last week on worries over supply disruption from the Middle
East and North Africa. Brent crude <LCOc1> slipped 34 cents to
settle at $111.80 a barrel.
The uprising in Libya has cut as much as three-quarters of
the country's oil output, prompting Saudi Arabia to step in
and plug the supply gap to Libya's oil buyers.
The gains raised worries about its effect on the global
economic recovery.
"If oil prices rise further, it will restrain economic
growth. But with no further escalations, at current levels it
isn't going to cause a recession," said Jason Pride, director
of investment strategy at Glenmede Investment and Wealth
Management in Philadelphia.
Spot gold <XAU=> stayed above $1,400 an ounce, reflecting
investors' safe-haven bid due to turmoil in the Middle East
and North Africa.
DOLLAR SLIPS BEFORE BERNANKE SPEAKS
The U.S. dollar fell versus a currency basket as investors
speculated that this week Fed chief Bernanke will signal
continued support for the central bank's quantitative easing
program.
Bernanke is scheduled to testify before key congressional
committees on Tuesday and Wednesday. Expectations are that he
will reiterate his view of an economic recovery that is still
not strong enough to significantly reduce the jobless rate,
suggesting the time is not ripe for U.S. interest rates to
rise.
The ICE futures exchange's U.S. dollar index <.DXY>, which
tracks the greenback's performance against a basket of major
currencies, was down 0.5 percent. Earlier, the index hit its
lowest level since Nov. 9.
U.S. Treasury prices were mixed, with Federal Reserve
purchases and subdued consumer spending in January seen as
supportive.
Commerce Department data showed U.S. consumer spending was
weaker than expected, down 0.1 percent in January, the first
decline in a year.
The yield of the benchmark 10-year U.S. Treasury note
<US10YT=RR> stood at 3.42 percent, unchanged from late last
week.
"Look for (investors) to have 'one foot' in the Treasury
market, and 'one foot' in something offering a higher return,
as investors go back and forth, depending how the wind blows
on some key global issues," said Kevin Giddis, president of
fixed income capital markets at Morgan Keegan in Memphis,
Tennessee.
According to fund tracker EPFR Global, a growing aversion
to risky assets in the latest week fueled the biggest flows to
global bond funds in more than three months, and turned more
investors away from emerging market stocks. []
The rotation out of emerging markets into developed
markets, partly driven by inflation concerns in emerging
economies, has led to outperformance in developed markets. The
MSCI emerging market index <.MSCIEF> has lost 4.2 percent this
year.
Credit Suisse's private bank expected the fund rotation to
ease in the second quarter.
In Europe, the pan-European FTSEurofirst 300 index
<> of top shares closed 0.8 percent higher at 1,169.24
points.
(Reporting by Caroline Valetkevitch; Additional reporting by
Edward Krudy, Ryan Vlastelica, Ellen Freilich and Wanfeng Zhou
in New York, and Dominic Lau in London; Editing by Jan
Paschal)
