* Upbeat U.S. economic data seen supportive of oil
* Oil prices climb to two-year high, gold falls
* Euro gyrates, Fitch downgrades Portugal sovereign debt
* Global equity prices mixed in thin pre-holiday trade
(Updates with New York closing prices, adds Nikkei futures,
adds comment)
By Daniel Bases
NEW YORK, Dec 23 (Reuters) - Crude oil prices hit two-year
highs above $91 a barrel on Thursday, propelled by more
evidence the U.S. economy is strengthening, but world stock
prices were little changed with some indexes holding near
two-year peaks.
The euro gyrated throughout the day, falling at one point
to three-week lows before recovering ground, only to come under
more selling pressure after Fitch Ratings cut Portugal's debt
one notch to A-plus from AA-minus, citing a difficult financing
environment and recession for the economy in 2011.
Most financial markets meandered in thin trade ahead of the
Christmas and New Year holidays, though stocks held near their
best levels since before the collapse of investment bank Lehman
Brothers in September 2008. The three U.S. benchmark stock
indexes gained ground for a fourth consecutive -- albeit
holiday-shortened -- week.
Japanese stocks, however, appeared poised to fall when
markets reopen for trade in Tokyo on Friday after a day off to
celebrate the Emperor's birthday. The March Nikkei futures
contract traded in Chicago fell 65 points to 10,320 <0#NK:>.
U.S. economic data showed signs of further improvement,
with new claims for jobless benefits falling and consumer
spending increasing in November for a fifth straight month.
Orders for long-lasting manufactured goods excluding
transportation increased 2.4 percent, the largest increase
since March, after a 1.9 percent drop in October. For more,
see: []
The U.S. data contrasted with developments in Europe, where
China said it was willing to help countries in the euro zone
return to economic health and would support the International
Monetary Fund bailout package for the bloc. []
Crude oil prices for February delivery on the New York
Mercantile Exchange rose $1.03 to settle at $91.51 a barrel.
Cold weather in the United States, plus shrinking U.S.
stockpiles and projections among OPEC members and analysts that
prices could reach $100 a barrel soon, supported the market
even with the greenback's strength.
"It's fair to say it (the price) is about right, but still
I think that it needs to improve a little bit more. About $100
would be a fair price for the time being," Libya's National Oil
Corp Chairman Shokri Ghanem told Reuters in Cairo ahead of a
meeting of Arab oil exporting countries.
Spot gold prices <XAU=> fell $4.66, or 0.34 percent, to
$1,379.89.
STOCKS
By the close of trade in New York, the Dow Jones industrial
average <> gained 14.00 points, or 0.12 percent, to
11,573.49. However, the Standard & Poor's 500 Index <.SPX> lost
2.07 points, or 0.16 percent, to 1,256.77. The Nasdaq Composite
Index <> dropped 5.88 points, or 0.22 percent, to
2,665.60.
Banks dragged on the market, giving back recent gains after
a strong month. Bank of America Corp <BAC.N> lost 2.4 percent
to $13.06 and JPMorgan Chase & Co <JPM.N> fell 0.2 percent to
$42.08.
Keith Springer, president of Springer Financial Advisors in
Sacramento, California, said the market is more likely to trade
sideways than fall dramatically.
"A sideways move can work off an overbought condition,"
said Springer. "Just the fact that it slows down and moves
sideways is almost a corrective pattern for the stock market."
On Wednesday, the S&P 500 rose to its highest level since
the Lehman collapse, led by bank stocks.
In Europe, shares were mixed as well. The FTSEurofirst 300
<> index of top European shares closed down 0.1 percent
at 1,146.49 points, having reached as high as 1,149.05 earlier.
London's FTSE 100 <> topped the 6,000-mark on Thursday for
the first time since June 2008 before ending at 5,996.07, up
0.21 percent on the day.
"Expectations have improved a lot because we haven't had a
double dip (recession), earnings are strong and the consensus
for the economy next year will be strong," said Mark Bon, fund
manager at Canada Life in London.
However, with the sovereign debt crisis in the background,
Bon said people were not "all-out bullish," adding that the
other concern was whether China would be successful in cooling
its property market.
The euro traded late in New York up just 0.14 percent at
$1.3117 <EUR=>, while the dollar fell 0.74 percent to 82.93
yen<JPY=>.
Against a basket of currencies made up of its major trading
partners, the dollar fell 0.31 percent <.DXY>
Benchmark 10-year U.S. Treasuries fell 13/32 of a point in
price, pushing the yield up to 3.397 percent <US10YT=RR>.
(Additional reporting by Leah Schnurr, Barbara Lewis,
Jonathan Leff, Rodrigo Campos, Wanfeng Zhou, Steven C. Johnson,
Natsuko Waki, Atul Prakash; Editing by Dan Grebler)
