* Upbeat U.S. economic data seen supportive of oil
* Oil prices climb to two-year high, gold falls
* Euro gyrates, Fitch downgrades Portugal sovereign debt
* Global equity prices mixed in thin pre-holiday trade
(Updates with comment, prices)
By Daniel Bases
NEW YORK, Dec 23 (Reuters) - Crude oil prices hit two-year
highs above $91 a barrel propelled by more evidence on Thursday
the U.S. economy is strengthening, but world stock prices were
little changed with some indexes holding near two year peaks.
The euro gyrated throughout the day, falling at one point
to three week lows before recovering ground, only to come under
more selling pressure after Fitch Ratings cut Portugal's debt
one notch to A-plus from AA-minus citing a difficult financing
environment and recession for the economy in 2011.
Most financial markets were left to meander in thin trade
ahead of the Christmas and New Year holidays, though stocks
remained around their best levels since before the collapse of
investment bank Lehman Brothers in September 2008.
U.S. economic data showed signs of further improvement with
new claims for jobless benefits falling, and consumer spending
increasing in November for a fifth straight month. Orders for
long-lasting manufactured goods excluding transportation
increased 2.4 percent, the largest increase since March, after
a 1.9 percent drop in October. []
The U.S. data contrasted with developments in Europe where
China said it was willing to help countries in the euro zone
return to economic health and would support the International
Monetary Fund bailout package for the bloc. []
Crude oil prices for February delivery on the New York
Mercantile Exchange rose 89 cents, or 0.98 percent, to $91.37 a
barrel on Thursday. Cold weather in the United States plus
shrinking U.S. stockpiles and projections among OPEC members
and analysts that prices could reach $100 a barrel soon,
supported the market even with the greenback's strength.
"It's fair to say it (the price) is about right, but still
I think that it needs to improve a little bit more. About $100
would be a fair price for the time being," Libya's National Oil
Corp Chairman Shokri Ghanem told Reuters in Cairo ahead of a
meeting of Arab oil exporting countries.
Spot gold prices <XAU=> fell $4.60, or 0.33 percent, to
$1,380.
STOCKS
In midday New York trade, the major stock indexes were
mixed.
The Dow Jones industrial average <> rose 8.74 points, or
0.08 percent, to 11,568.23. The Standard & Poor's 500 Index
<.SPX> fell 1.96 points, or 0.16 percent, to 1,256.88. The
Nasdaq Composite Index <> lost 5.84 points, or 0.22
percent, at 2,665.64.
Retail stocks got a boost as Bed Bath & Beyond Inc
<BBBY.O>rose 5.73 percent to $50.40 after it beat quarterly
profit estimates and forecast a strong holiday season.
[]
On Wednesday, the S&P 500 rose to its highest level since
the collapse of Lehman Brothers, led by bank stocks.
In Europe, shares were mixed as well. The FTSEurofirst 300
<> index of top European shares closed down 0.1 percent
at 1,146.69 points, having reached as high as 1,149.05 earlier.
London's FTSE 100 <> topped the 6,000-mark on Thursday for
the first time since June 2008 before ending at 5,996.07, up
0.21 percent on the day.
"Expectations have improved a lot because we haven't had a
double dip (recession), earnings are strong and the consensus
for the economy next year will be strong," said Mark Bon, fund
manager at Canada Life in London.
However, with the sovereign debt crisis in the background
he didn't think people were "all-out bullish," Bon said, adding
that the other concern was whether China would be successful in
cooling its property market.
The euro traded up in midday New York action, gaining just
0.12 percent at $1.3115 <EUR=>, while the dollar fell 0.74
percent to 82.93 yen<JPY=>. Japanese markets were closed on
Thursday in observance of the Emperor's birthday.
Against a basket of currencies made up of its major trading
partners, the dollar fell 0.29 percent <.DXY>
Benchmark 10-year U.S. treasuries fell 11/32 of a point in
price, pushing the yield up to 3.39 percent <US10YT=RR>.
(Additional reporting by Barbara Lewis, Jonathan Leff, Rodrigo
Campos, Wanfeng Zhou, Steven C. Johnson, Natsuko Waki, Atul
Prakash)
