* Global stocks gain on reassuring earnings, economic news
* Euro rises for 4th session vs dollar on German sentiment
* U.S. bonds tumble on supply worries, waning safety bid
* Oil tops $51 a barrel on stock gains, dollar weakness
(Recasts, updates U.S. markets; changes dateline, previous
LONDON)
By Herbert Lash
NEW YORK, April 24 (Reuters) - Oil and global stocks
rallied on Friday after better-than-expected results at Ford
Motor and American Express, along with reassuring U.S. and
German economic news, provided cheer amid some dire economic
data.
The euro rose for a fourth day against the U.S. dollar to
trade at a one-week high after German corporate sentiment in
April rose to its best level in five months, boosting hopes the
downturn in the euro zone's largest economy may be bottoming.
Oil jumped above $51 on rising stock market optimism, a
weaker dollar and data showing the inventory of U.S. homes for
sale plummeted at a record pace at the end of March. But price
gains were capped by historically high inventories of crude.
Rising stocks nipped the safe-haven appeal of government
debt as investors worried about a spate of debt supply next
week, but euro zone government bonds rose after Britain's
economy posted its sharpest first quarter decline in 30 years.
[]
The unemployment rate in Spain soared to above 17 percent,
also helping European debt prices to rise. []
The U.S. economic data set a positive tone for stocks, with
March durable goods orders slipping by less than expected while
new home sales last month were stronger than expected. That
raised hopes the economic cycle may have hit a trough.
A 5.2 percent monthly change in inventories of new U.S.
homes was the largest drop in more than 45 years, while the
year-on-year plunge of 33.7 percent was the largest on record.
The data "is adding some encouragement to the idea that
maybe the economy is flattening out here at the bottom," said
Kim Rupert, managing director of global fixed-income analysis
at Action Economics LLC in San Francisco.
Shares of American Express <AXP.N> surged 16 percent, the
biggest boost to the Dow, and Microsoft Corp's <MSFT.O> 8.3
percent rise was the biggest lift on Nasdaq.
Investors cheered Microsoft's cost-cutting efforts and
appeared relieved that the release of its Windows 7 operating
system was on track.
Ford posted a smaller-than-expected loss and said it did
not expect to seek government loans, despite the auto sector's
deep downturn. [ID:nN24400235) Ford rose 16.3 percent.
At 1 p.m., the Dow Jones industrial average <> was up
135.32 points, or 1.70 percent, at 8,092.38. The Standard &
Poor's 500 Index <.SPX> was up 15.46 points, or 1.81 percent,
at 867.38. The Nasdaq Composite Index <> was up 40.16
points, or 2.43 percent, at 1,692.37.
The FTSEurofirst 300 <> index of top European shares
ended 2.3 percent higher at 810.38 points, but fell for the
week. It was the first weekly loss in the past seven weeks.
The euro enjoyed broad gains after the German Ifo business
climate index rose to 83.7 in April from 82.2 last month,
beating forecasts for 82.3.
The euro <EUR=> was up 0.94 percent at $1.3269.
The dollar fell against a basket of major currencies, with
the U.S. Dollar Index <.DXY> off 0.94 percent at 84.602.
Against the yen, the dollar <JPY=> fell 1.06 percent at
97.01.
U.S. crude oil futures <CLc1> rose $1.75 at $51.37 a
barrel, and London Brent crude <LCOc1> rose $1.62 to $51.73.
Oil has been influenced by equity markets for much of the
week, as an indicator of future economic strength and of the
potential for higher oil demand, and dollar fluctuations.
"The dollar weakened yesterday, and it is weakening
further. Equities are holding well at this moment so that is
providing support to oil prices," said Olivier Jakob with
Petromatrix.
Gold surged to a three-week high before easing, boosted by
the prospect of further purchases by China after the country
said it had been buying the precious metal since 2003.
Spot gold <XAU=> in New York rose $8.30 to $910.30 an
ounce.
"The massive accumulation of foreign exchange reserves
meant gold as a proportion of total reserves had fallen below 1
percent compared with a norm of about 2 percent," said Michael
Lewis, head of commodities research at Deutsche Bank.
The idea that the economic tailspin may have touched bottom
boosted stocks and undermined bonds, which were also being hit
by worries over an expected pending wave of debt supply.
The benchmark 10-year U.S. Treasury note <US10YT=RR> was
down 14/32 in price to yield 2.98 percent. The 2-year U.S.
Treasury note <US2YT=RR> fell 1/32 in price to yield 0.95
percent.
Asian stocks fell on earnings disappointments, snapping the
region's longest streak of weekly gains in 18 months.
Japan's Nikkei average <> fell 1.6 percent,
underperforming the broad regional downdraft, while MSCI's
index of Asia Pacific <.MIAPJ0000PUS> shares excluding Japan
fell 0.4 percent.
(Reporting by Leah Schnurr, Vivianne Rodrigues, Chris Reese in
New York; Sitaraman Shankar, Ikuko Kao, Pratima Desai in
London; writing by Herbert Lash; Editing by Padraic Cassidy)
