* U.S. dollar sinks on falling U.S. consumer sentiment
* Stocks advance on upbeat outlook from retailers
* Gold pushes up toward record highs, oil falls
(Updates with closing prices, details, comments)
By Daniel Bases
NEW YORK, Nov 13 (Reuters) - Markets were pulled in
different directions on Friday after a grim U.S. consumer
outlook tugged the dollar lower but upbeat comments from big
U.S. retailers pushed investors to buy stocks.
The U.S. dollar's weak performance was also attributed to
data showing a resumption of economic growth in the euro zone
and a widening September U.S. trade deficit.
Share prices in Britain closed at a 14 month high, helped
by banking and commodity stock gains while European shares
closed at a three-week peak.
Gold rose near its record high and grain prices advanced
because of the weak greenback. But oil prices touched a
one-month low on the weak consumer and trade data plus reports
of bulging U.S. fuel inventories.
"There is increasing evidence that the recovery in the U.S.
is much more vulnerable than previously thought, which provides
another reason for traders to bail out of U.S. dollars," said
Kathy Lien, director of currency research at GFT Forex.
In the currency markets, the euro <EUR=> was up 0.49
percent at $1.4914 against the greenback. Against the Japanese
yen, the dollar <JPY=> was down 0.81 percent at 89.65.
The ICE Futures U.S. dollar index <.DXY>, a gauge of the
greenback against six other major currencies, fell 0.46 percent
to 75.246, just above Wednesday's 15-month low.
"Data out of China has been robust and policymakers around
the world have indicated that they will keep monetary policy
loose, which is broadly supportive of higher-yielding and
commodity-related currencies," said RBS currency strategist
Paul Robson.
A report showed the euro zone economy grew 0.4 percent
quarter-on-quarter after five consecutive quarters of shrinking
output. []
The U.S. trade deficit widened in September by 18.2
percent, the biggest monthly rise in 10 years, as oil prices
rose for the seventh straight month and imports from China
increased. []
HEARTS, MINDS AND WALLETS
Data from the Reuters/University of Michigan Surveys of
Consumers showed U.S. consumer confidence fell to its weakest
in three months amid dismal expectations for job and income
prospects. [] []
Speaking to Reuters television, Richard Curtin, the
director of the consumer survey, said retailers' purchase plans
are being shelved and retail sales will not be robust, even
with discounting.
Curtin said the survey found just one in 10 consumers saw
an increase in their income, the fewest recorded in data going
back to 1946, and that 36 to 37 percent of those surveyed said
their income had declined.
"This is really a concern for consumers that their
financial situation is just heading south, and there is really
little hope that they can expect to improve in the year ahead,"
he said.
But reports from retailers JC Penney <JCP.N> and
Abercrombie & Fitch Co <ANF.N> showed earnings either met or
beat analyst expectations, helping U.S. stocks advance.
"I think people were paying more attention to JC Penney and
Abercrombie & Fitch as indicative examples of people's
sentiment toward retail," said Michael James, senior trader at
Wedbush Morgan in Los Angeles.
Solid earnings news from entertainment company Walt Disney
Co <DIS.N> also helped boost stocks.
At the close, the Dow Jones industrial average <> rose
96.36 points, or 0.94 percent, at 10,293.83. The Standard &
Poor's 500 Index <.SPX> was up 9.27 points, or 0.85 percent,
at 1,096.51. The Nasdaq Composite Index <> was up 20.94
points, or 0.97 percent, at 2,169.96.
The FTSEurofirst 300 <> index of top European shares
rose 0.4 percent to 1,019.41 points, its highest close since
Oct. 21, and just 0.7 percent short of a 13-month closing
high.
Japan's Nikkei 225 index <> fell 0.4 percent.
The benchmark 10-year U.S. Treasury note <US10YT=RR> was
down 5/32, with the yield at 3.427 percent. The euro zone's
10-year Bund yielded 3.382 percent <EU10YT=RR>, up 2 basis
points from late Thursday trade.
Spot gold prices <XAU=> rose $15.65, or 1.419 percent, to
$1,118.85 an ounce, just under Thursday's record $1,122.85.
U.S. light sweet crude oil <CLc1> settled down 59 cents at
$76.35 per barrel.
Wheat and soymeal prices rose.
(Additional reporting by Chris Reese, Wanfeng Zhou, Rodrigo
Campos in New York; Dominic Lau, Jessica Mortimer in London;
Wayne Cole in Sydney; and Miho Yoshikawa in Tokyo; Editing by
Kenneth Barry)
