* Global stocks rise on late-day rally on Wall Street
* Euro rises on hopes an Irish aid package is near
* Oil falls as investors weigh China's move on inflation
* Bonds steady to higher before supply next week
(Updates with close of U.S. markets)
By Herbert Lash
NEW YORK, Nov 19 (Reuters) - Hopes Ireland's debt crisis
will soon be resolved lifted investor sentiment and the euro on
Friday even as U.S. oil prices slid after China sought to curb
inflation for the second time in two weeks.
Wall Street rebounded late in the session, pulling along
global stocks, on a rally in semiconductors. But the broad U.S.
market finished just below a key psychological level, a sign
shares could trade in a tight range through year's end.
The euro rose for a third straight day against the dollar
and gold prices were little changed just above $1,350 an ounce
on growing confidence a financial aid plan for Ireland will be
unveiled next week, according to European Union sources. For
details see []
Hopes that Ireland was near a deal to get tens of billions
of euros from its European partners and the International
Monetary Fund helped push the euro above $1.37 overnight. But
momentum stalled as traders awaited further details.
The euro <EUR=> was up 0.25 percent at $1.378.
Experts warned an Irish bailout may not be enough to
prevent contagion to other euro zone members. []
"The sense of calm that has returned today and yesterday is
taking away any safe-haven bid that may have emanated from the
potential crisis," said Tom Pawlicki, a precious metals and
energy analyst of MF Global.
MSCI's all-country world stock index <.MIWD00000PUS> rose
about 0.1 percent, while its emerging markets index <.MSCIEF>
gained almost the same.
On Wall Street, the Dow Jones industrial average <> was
up 22.32 points, or 0.20 percent, at 11,203.55. The Standard &
Poor's 500 Index <.SPX> was up 3.04 points, or 0.25 percent, at
1,199.73. The Nasdaq Composite Index <> was up 3.72
points, or 0.15 percent, at 2,518.12.
Analysts said if the benchmark S&P 500 fails to break above
the 1,200 mark, stocks could struggle to move much higher until
the beginning of next year.
Sentiment indicators on Wall Street have grown too bullish,
and stocks could be in a pullback or trading range "until we
get the optimism worked off and some pessimism built up," said
William Delwiche, an investment strategist at Robert W. Baird &
Co in Nashville, Tennessee.
The raising of banking reserve requirements in China to
tighten the economy kept bullion under pressure and led crude
prices to fall on concerns it will reduce demand in the world's
second-largest consumer of oil.
The move by the People's Bank of China raised speculation a
hike in interest rates was in the works. U.S. oil prices fell,
logging their biggest weekly decline in two months.
U.S. crude for December delivery <CLc1> settled down 34
cents at $81.51 on the contract's last day. U.S. January crude
<CLc2> settled down 44 cents to $81.98 a barrel.
In London, Brent crude <LCOc1> for January delivery settled
down 71 cents to $84.34 a barrel.
U.S. gold futures for December delivery <GCZ0> settled down
70 cents at $1,352.30.
U.S. Treasuries were steady to higher, ending a volatile
week, as the market consolidated at higher yields reached in
recent weeks ahead of new supply. []
Thirty-year bonds, meanwhile, rose as the Federal Reserve
purchased long-dated debt as part its $600 billion program,
known as QE2. The market also benefited from a bid as hedges
relating to municipal bond sales were removed.
The 30-year U.S. Treasury bond <US30YT=RR> was up 23/32 in
price to yield 4.24 percent. The benchmark 10-year U.S.
Treasury note <US10YT=RR> was up 7/32 in price to yield 2.88
percent.
"People are buying on dips," said Laura LaRosa, director of
fixed income with Glenmede in Philadelphia.
Asian stock markets were mixed, with MSCI's Asia ex-Japan
index <.MIAPJ0000PUS> down 0.1 percent and Japan's Nikkei
<> average up 0.1 percent.
(Reporting by Gertrude Chavez-Dreyfuss, Robert Gibbons, Leah
Schnurr, Karen Brettell and Frank Tang in New York; Writing by
Herbert Lash; Editing by Andrew Hay)
