* Stocks hold gains, extend multi-week highs
* Yen at 15-year peak after Prime Minister survives vote
* German economic sentiment slips
By Daniel Bases
NEW YORK, Sept 14 (Reuters) - The yen hit a 15-year high
versus the U.S. dollar on Tuesday after Japan's ruling party
survived a leadership vote, while global share prices traded
flat as investors survey the landscape from multi-week peaks.
Gold rose modestly and oil edged up in cautious trade ahead
of weekly oil inventory reports. []
The yen traded below 83 per U.S. dollar and the euro hit a
one-month high against the greenback, breaking above $1.29.
Stronger-than-expected U.S. retail sales and a raised
outlook from U.S. electronics retailer Best Buy <BBY.N> helped
limit equity sales by investors looking to lock in profits.
Recent better-than-expected data "along with very negative
investor sentiment, which is a contrarian indicator, have
helped propel markets higher over the past couple weeks," said
Michael Sheldon, chief market strategist at RDM Financial in
Westport, Connecticut.
"Markets are taking a breather today and a little bit of
profit-taking."
U.S. equities edged to five-week highs, recouping some
early session losses. In mid-morning New York trade, the Dow
Jones industrial average <> rose 23.76 points, or 0.23
percent, to 10,567.89. The Standard & Poor's 500 Index <.SPX>
gained 2.36 points, or 0.21 percent, at 1,124.26. The Nasdaq
Composite Index <> climbed 8.66 points, or 0.38 percent,
to 2,294.37.
European shares drifted lower. The FTSEurofirst 300
<> index of top European shares was down 0.05 percent at
1,087.41 in a choppy session after closing on Monday at its
highest level since late April.
MSCI's All-Country World Index <.MIWD00000PUS> rose to a
four-month high, up 0.58 percent on the day.
Tokyo's benchmark Nikkei-225 stock index <> finished
down 0.24 percent.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
"Fear" and shopping - U.S. retail sales in a volatile market
environment. For graphic: http://link.reuters.com/zux72p
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
YEN PLAY
The yen traded just above 83 <JPY=> against the U.S.
dollar, its strongest level since mid-1995.
Prime Minister Naoto Kan's victory over party heavyweight
Ichiro Ozawa, who had made more strident calls to curb the
yen's rise, raised speculation that Japanese authorities would
not intervene imminently.
"Kan's not very attractive for the markets. It will
probably mean more of the same in terms of policy, so there is
no reason to welcome him," said Mitsuhige Akino, chief fund
manager at Ichiyoshi Investment Management.
"The threat of intervention will hang over the market but
will there be international cooperation? Probably no. So the
market will continue to test Kan's resolve," added Simon
Derrick, head of currency research in Bank of New York Mellon.
The euro traded up 0.91 percent at $1.2995 while the
Australian dollar reached a two-year high against the U.S.
dollar at $0.9435 <AUD=D4> before slipping back to $0.9420, up
0.7 percent.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
PDF presentation on the yen: http://r.reuters.com/zuz33p
PDF on Japan leadership vote: http://r.reuters.com/vyk92p
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
Government debt prices were generally stronger in a
flight-to-safety trade, despite the U.S. retail sales report,
which contrasted with a survey showing economic sentiment in
Germany fell more than forecast in September. The ZEW survey
turned negative for the first time since March 2009 and threw
into doubt the economic recovery of Europe's largest economy.
[]
December Bund futures <FGBLZ0> rose 58 basis points to
130.50, off an early high in the 130.70 range. Benchmark
10-year U.S. Treasuries <US10YT=RR> rose 10/32 of a point in
price, pushing the yield down to 2.70 percent.
U.S. light sweet crude oil <CLc1> rose 75 cents to $77.94
per barrel. Spot gold prices <XAU=> rose $23.55 to $1268.50.
(Additional reporting by Nick Olivari, Leah Schnurr, Jessica
Mortimer, Tamawa Desai, Shinichi Saoshiro and Aiko Hayashi;
Editing by Dan Grebler)
