* Treasury yields rise as U.S. housing data beats
* Dollar steady as housing data stems U.S. yield drop
* Brent rises above $109, Libya oil recovery short-lived
(Adds close of U.S. markets)
By Herbert Lash
NEW YORK, May 16 Global equity markets turned
higher in a late-day rebound on Friday after being down most of
the session on concerns about economic growth, while government
debt prices fell on surprisingly strong U.S. housing data.
The Dow industrials ended the week down and the S&P 500
ended a tad lower, after both hit record highs earlier in the
A monthly gauge of U.S. consumer sentiment fell in May as a
gloomy view on income growth clouded an otherwise positive
economic outlook, the Thomson Reuters/University of Michigan
But the Commerce Department said U.S. housing starts jumped
in April and building permits hit their highest in nearly six
years, offering hope the troubled American housing market could
The data provided fodder for those who expect the economy to
struggle in the second half of the year, while the housing
report bolstered those who see stronger growth ahead. Weighing
on that tug-of-war were expectations of a market correction.
MSCI's all-country world index was up 0.1
percent but still off a high set on Thursday. The pan-European
FTSEurofirst 300 index closed up 0.3 percent.
The Dow Jones industrial average rose 44.5 points,
or 0.27 percent, to end at 16,491.31. The S&P 500 gained
7.01 points, or 0.37 percent, to 1,877.86 and the Nasdaq
Composite added 21.296 points, or 0.52 percent, to
For the week, the Dow fell 0.56 percent, the S&P 500 fell
0.03 percent and the Nasdaq rose 0.46 percent.
"The market's held in, and I think technically there's a
sense it didn't break down," said Ken Polcari, director of the
NYSE floor division at O'Neil Securities in New York. "People
came in expecting it was going to be another day like yesterday
and the fact is, it didn't turn out like that at all."
The Russell 2000 index of small-cap companies briefly
entered correction territory on Thursday, defined as a 10
percent decline from a recent high. It rose 0.63 percent on
Friday, and was 9.1 percent below its recent peak in early
U.S. Treasuries prices fell after the housing data pointed
to a strengthening economy, pulling yields on benchmark 10-year
notes up from six-month lows. They fell 5/32 in
price to yield 2.5213 percent.
The dollar held steady against major currencies as U.S.
The dollar traded at 101.52 yen, down 0.04 percent,
and rose against the euro, up 0.1 percent at $1.3695.
Brent crude oil rose above $109 a barrel after a recovery in
Libyan oil supply proved short-lived and tension simmered over
Brent crude rose 66 cents to settle at $109.75 a
barrel. U.S. crude climbed 52 cents to settle at $102.02.
(Additional reporting by Francesco Canepa; Editing by
Bernadette Baum, Chris Reese and Dan Grebler)