* MSCI world equity index steady near Sept 2008 high
* Oil sets fresh 2-year high on cold weather
* Euro steady; German government bonds weaker
By Natsuko Waki
PARIS, Dec 24 (Reuters) - World stocks held near the
previous day's two-year high on Friday while oil hit fresh
two-year peaks after strong U.S. data this week encouraged
investors to maintain their risk positions into 2011.
Thursday's U.S. data showing demand for a range of
long-lasting U.S. manufactured goods surged in November and
consumer spending rose for a fifth straight month reinforced
expectations for strong economic growth in the fourth quarter.
"We've had a good run, helped by quantitative easing and
better economic data," said Bernard McAlinden, investment
strategist at NCB Stockbrokers in Dublin. "We've broken out of
ranges, and it can go higher in 2011."
MSCI world equity index <.MIWD00000PUS> held steady just
below Thursday's peak, which was its highest since September
2008, set just before the collapse of Lehman Brothers.
The index is up nearly 10 percent this year.
Fund tracker EPFR said investor focus has shifted from bonds
to equities in the final weeks of 2010, with equity funds
globally taking in a net $4.5 billion for the week ending Dec.
22. Bond funds saw redemptions totalling $2.3 billion.
The Thomson Reuters global stock index <.TRXFLDGLPU> was
also steady.
The FTSEurofirst 300 index <> was down around 0.1
percent as concerns about the impact of the euro zone debt
crisis weighed on the banking sector.
Ratings agency Fitch downgraded Portugal on Thursday, citing
burgeoning debt levels and a tough financing environment, in a
move which analysts said had been largely expected by markets.
The downgrade puts Fitch's rating for Portugal on a par with
Moody's A1 rating, but still two notches above that of Standard
and Poor's A-minus. []
Trading was very light, with markets closed in Germany,
Italy, Spain, Denmark, Finland, Norway, Sweden, Switzerland,
Greece, Austria, Hungary, and Iceland. Wall Street is also
closed.
The UK stock market will close at 1230 GMT while Euronext
stock markets will close at 1300 GMT.
Emerging stocks <.MSCIEF> were also unchanged on the day.
U.S. crude oil <CLc1> rose more than 1 percent to $91.41 a
barrel as unusually cold weather fuelled demand and depleted
supplies.
Snow and more frigid temperatures were predicted in parts of
Europe over the weekend, threatening to prolong chaos at
airlines and rail networks and further boost fuel demand.
[]
The bund future <FGBLc1> fell 32 ticks.
The dollar <.DXY> was down 0.1 percent against a basket of
major currencies while the euro shrugged off the Portuguese
rating downgrade to rise slightly to $1.3126 <EUR=>.
(Editing by Toby Chopra)
