* U.S. stocks close flat after best equity month in years
* Government debt steady after after Fed's big purchase
* Oil falls from session highs after U.S. data
* Dollar firmer as investors see signs of U.S. recovery
(Adds close of U.S. markets)
By Herbert Lash
NEW YORK, April 30 (Reuters) - U.S. stocks ended little
changed on Thursday as equity markets around the world capped
their best monthly gain in years after fresh U.S. economic data
kindled hopes that a deep recession is almost over.
U.S. government bond prices were steady as the perception
that the longest recession since the Depression may end by late
summer took greater hold, despite automakers Chrysler filing
for bankruptcy. []
While Chrysler's bankruptcy filing saw U.S. stocks give
back gains seen earlier in the day, it also signaled that U.S.
President Barack Obama is prepared to play hardball with
holdout lenders to protect the taxpayer.
"I don't think anybody's surprised. Bankruptcy is what they
have been headed for in the past several months. Chrysler was
too small to survive on its own," said Mirko Mikelic, a
portfolio manager at Fifth Third bank.
Investors in competing automakers reacted positively to the
news, sending GM shares up 6.1 percent and Ford Motor Co <F.N>
up 9.7 percent.
The benchmark S&P 500 Index <.SPX> posted its best monthly
gain by percentage point since March 2000, while MSCI's
all-countries world index <.MIWD00000PUS> climbed to it's best
monthly performance in more than a decade.
The S&P 500 is up 29 percent from the bear-market closing
low set on March 9.
For the session, the Dow Jones industrial average <>
fell 17.61 points, or 0.22 percent, to 8,168.12 and the
Standard & Poor's 500 Index <.SPX> slipped 0.83 of a point, or
0.09 percent, to 872.81.
The tech-heavy Nasdaq Composite Index <> gained 5.36
points, or 0.31 percent, to 1,717.30.
Investors shrugged off a World Health Organization warning
that a flu pandemic was imminent, and analysts said the health
crisis might pass without any significant economic impact,
leaving investors to focus on better-than-expected earnings and
economic data.
Stocks gained wide support from profit reports from
companies like Dow Chemical Co <DOW.N>, which rose 18.4 percent
at $16.00 after results handily beat estimates.
[]
The number of U.S. workers filing new claims for
unemployment aid surprisingly fell last week, suggesting the
pace of layoffs was easing, even though benefits rolls swelled
to yet another record high in March.
A separate report showed business activity in the U.S.
Midwest contracted at a less severe rate in April as new orders
for merchandise surged. [], while the Economic
Cycle Research Institute said the U.S. recession will probably
end before summer is out.
European equities ended higher, as a key benchmark posted
its best-ever monthly performance, driven by
stronger-than-expected company earnings and hope that the
market was bottoming out.
The FTSEurofirst 300 <> index of top European shares
closed 1.5 percent higher at 828.62 points after hitting its
highest level since mid-January.
The index gained more than 13 percent in April, its best
ever monthly rise.
U.S. Treasury debt prices were mixed after the Federal
Reserve bought $3.025 billion in government debt as part of its
plan to buy up to $300 billion in longer-term Treasuries within
a six month time-frame. Since late March, the Fed has bought
$76.8 billion in Treasuries.
The benchmark 10-year U.S. Treasury note <US10YT=RR> fell
3/32 in price to yield 3.12 percent. The 2-year U.S. Treasury
note <US2YT=RR> rose 2/32 in price to yield 0.91 percent.
The U.S. dollar edged up against major currencies, with the
U.S. Dollar Index <.DXY> up 0.15 percent at 84.771. Against the
yen, the dollar <JPY=> rose 1.14 percent at 98.61. The euro
<EUR=> was down 0.26 percent at $1.3228.
Oil rose as the reassuring U.S. jobs data and upbeat
corporate profits outweighed rising energy inventories and
slumping demand. U.S. crude <CLc1> rose 15 cents to settle at
$51.12 a barrel. Brent crude <LCOc1> rose 2 cents to settle at
$50.80 a barrel.
U.S. gold futures dropped 1.0 percent as a better tone of
the economy dampened safe haven demand. Gold for June delivery
<GCM9> settled down $9.30 at $891.20 an ounce in New York.
(Reporting by Leah Schnurr, Steven C. Johnson, Matthew
Robinson, Burton Frierson and Frank Tang in New York; David
Sheppard and Atul Prakash in London; writing by Herbert Lash)
