* U.S. stocks add to gains on rising consumer sentiment
* U.S. dollar, yen slide as data lifts risk appetite
* Oil rises above $53 a barrel as confidence improves
* Bonds slide on stronger data, heavy supply calendar
(Adds close of U.S. markets)
By Herbert Lash
NEW YORK, May 1 (Reuters) - Oil prices rose on Friday on a
more upbeat U.S. economic news while U.S. stocks closed higher
as rising optimism the worst of a deep recession may be over
offset selling pressure caused by investors locking in strong
gains in April.
The U.S. dollar and yen fell as the data lifted risk
appetite and pared demand for both currencies as a refuge for
safety against the global slowdown. The data knocked down U.S.
government bond prices, sending yields to new 5-month highs.
U.S. consumers felt much more upbeat about the economy last
month, when the manufacturing sector also appeared to be
crawling out of a deep recessionary hole, reports showed. For
details, see []
Sentiment also was supported by encouraging data from Asian
export powerhouses China and South Korea. But trading volume
was weak as markets around the world were closed for the May 1
holiday. Japan and London markets will shut on Monday.
Recent economic data and a note of optimism from the U.S.
Federal Reserve this week has boosted risk appetite worldwide.
"Risk appetite is definitely coming back and the data this
morning was phenomenal," said Melvin Harris, a market analyst
at Advanced Currency Markets in New York.
"The reports are supportive factors to truly build the case
that while things are not completely better yet, we are moving
in a positive direction. Economic fundamentals will become more
important in the next couple of months."
MSCI's all-countries index <.MIWD00000PUS> for the eighth
straight week, as did the tech-heavy Nasdaq, its longest streak
since December 1999.
A 4 percent gain in oil prices lifted Exxon Mobil <XOM.N>
and other energy stocks, which helped U.S. equity indexes climb
slightly higher. Exxon rose 1 percent to $68.01, and the S&P
energy index <.GSPE> gained 3 percent.
U.S. crude futures <CLc1> jumped $2.08 to settle at $53.20
a barrel after hitting $53.65, the highest since April 3. Brent
crude <LCOc1> settled up $2.05 at $52.85.
Improved consumer sentiment and evidence of record
compliance to agreed output cuts by the Organization of
Petroleum Exporting Countries pushed crude higher.
OPEC reduced supply in April, implementing 84 percent of an
agreed output cut, a Reuters survey showed. Compliance set a
record, with the average around 60 percent. []
Downward pressure on stocks came from investors who chose
to book some gains after the strong run-up since the bear
market low in early March. The benchmark S&P 500 index recorded
its biggest rise in nine years last month.
The Dow Jones industrial average <> closed up 44.29
points, or 0.54 percent, to 8,212.41. The Standard & Poor's 500
Index <.SPX> added 4.71 points, or 0.54 percent, to 877.52. The
Nasdaq Composite Index <> rose 1.90 points, or 0.11
percent, to 1,719.20.
For the week, the Dow rose 1.7 percent, the S&P 1.3 percent
and the Nasdaq 1.5 percent.
Britain's top share index was flat by the close after sharp
gains the previous two sessions, with rising mining stocks
offset profit taking in energy and defensive shares.
The pan-European FTSEurofirst <> closed 0.1 percent
higher at 829.65 and the FTSE 100 <> index closed 0.49
points lower at 4,243.22. Other European markets were closed.
Miners gained as metal prices firmed, with copper <MCU3=LX>
hitting one-week highs in London. Copper settled 2.6 percent
higher at $2.1010 a pound, its highest level on a closing basis
since April 20.
The euro <EUR=> rose 0.30 percent at $1.3266.
The dollar fell against a basket of major currencies, with
the U.S. Dollar Index <.DXY> off 0.32 percent at 84.549.
Against the yen, the dollar <JPY=> rose 0.73 percent at 99.28.
U.S. Treasury debt prices were lower.
The benchmark 10-year U.S. Treasury note <US10YT=RR> fell
12/32 in price to yield 3.17 percent. The 2-year U.S. Treasury
note <US2YT=RR> fell 1/32 in price to yield 0.92 percent.
Gold ended lower in quiet trade on Friday as signs of
economic recovery dent safe-haven demand.
U.S. gold futures for June delivery <GCM9> settled down
$3.00 at $888.20 an ounce in New York.
Japanese stocks set a four-month closing high, with the
Nikkei average <> gaining 1.7 percent despite more bleak
data showing the economy slipping back into deflation and
unemployment rising at a record pace in March. []
But the MSCI index of Asia-Pacific shares <.MIAPJ0000PUS>
outside Japan dipped 0.2 percent and pulled back from a
six-month high, mainly on a slight drop in Australian shares
<>. Most markets included in the index were closed.
(Reporting by Chuck Mikolajczak, Gertrude Chavez-Dreyfuss,
Ellen Freilich and Frank Tang in New York; Ikuko Kao and Simon
Falush in London; writing by Herbert Lash)
