* Strong demand in US Treasuries auction boosts sentiment
* Global stocks extend five-day rally on earnings outlook
* U.S. dollar, oil prices seesaw in choppy session
By Walter Brandimarte
NEW YORK, Sept 10 (Reuters) - Global stocks extended a
five-day rally on Thursday on positive corporate earnings
forecasts, while U.S. Treasuries prices rose sharply after an
auction of 30-year bonds attracted strong demand.
The euro hit a fresh 2009 high against the U.S. dollar
after the Treasury auction, while oil prices edged up in choppy
trading.
Further supporting market sentiment was a
better-than-expected reading on U.S. weekly jobless claims. A
sharp widening of the U.S. trade gap was also seen as a sign
that the world's largest economy is recovering, as imports rose
partly on demand for foreign cars and consumer goods. For
details, see [].
Still, the market seemed to be running out of steam after
several days of gains.
"Investors are waiting for an assessment on what type of
recovery it is," said Alan Lancz, president of Alan B. Lancz &
Associates Inc in Toledo, Ohio.
The MSCI's all-country world stock index <.MIWD00000PUS>
edged 0.5 percent higher after jumping about 4.5 percent during
the past five sessions.
Wall Street extended a four-day winning streak, as brighter
earnings outlooks from Texas Instruments Inc <TXN.N> and
Procter & Gamble Co <PG.N> eclipsed disappointing news from
Monsanto Co <MON.N>. [] []
[]
The Dow Jones industrial average <> climbed 46.86
points, or 0.49 percent, to 9,594.08, while the Standard &
Poor's 500 Index <.SPX> was up 5.35 points, or 0.52 percent, at
1,038.72. The Nasdaq Composite Index <> rose 12.47 points,
or 0.61 percent, to 2,072.86.
European shares ended flat after a choppy session, with the
FTSEurofirst 300 <> index of top shares closing up 0.05
percent at 988.33 points.
U.S. Treasuries extended their rally after an auction of
reopened 30-year bonds was well received by investors.
Benchmark 30-year Treasury notes <US30YT=RR> jumped 1-29/32
in price to 104-24/32. The 30-year yield, which moves inversely
to price, was 4.22 percent, down from 4.33 percent late on
Wednesday.
US DOLLAR GAIN AFTER AUCTION
The strong demand in the Treasuries auction lifted the euro
<EUR=> to $1.4613, a fresh 2009 high. Also supporting appetite
for higher-yielding assets was the U.S. weekly jobs data, which
showed a decline in both the the number of U.S. workers filing
new claims for jobless benefits and the number of workers still
collecting such benefits.
But trading was choppy as fretted about the sharp rise in
risk appetite seen in recent days.
"Some caution has returned to the foreign exchange markets
today," said Nick Bennenbroek, head of currency strategy at
Wells Fargo Bank in New York.
U.S. crude oil prices were hovering around Wednesday's
close after jumping above $72 a barrel earlier in the session.
The contract for delivery in October <CLV9> was up 0.4 percent
at $71.61 a barrel.
(Reporting by Walter Brandimarte)
