(Corrects analyst's affiliation in paragraph 4)
* Global share indexes hit all-time high
* S&P 500 hits record on growth bets despite U.S. GDP
* U.S. bond yields slip to 11-month lows
By Angela Moon
NEW YORK, May 29 Global equity markets hit an
all-time high on Thursday as investors brushed off
weaker-than-expected U.S. economic data, while benchmark U.S.
Treasury yields fell to 11-month lows.
The S&P 500 hit another intraday high despite first-quarter
GDP data showing the U.S. economy contracted 1 percent.
Better-than-expected jobless claims reflecting a strengthening
labor market and merger activity also boosted sentiment.
The dollar trimmed early losses against major currencies as
traders focused on a strengthening U.S. economy.
"Once you get beyond the headline number and look under the
hood, things don't really look so bad," said Boris Schlossberg,
managing director of FX strategy at BK Asset Management in New
York. "Inventories were to blame for a lot of it and that bodes
well for the future."
The MSCI World Index, up 1.4 percent since
the last ECB policy meeting, gained 0.2 percent.
Wall Street's Dow Jones industrial average added 7.41
points, or 0.04 percent, to 16,640.59. The Standard & Poor's 500
Index was up 3.89 points, or 0.20 percent, at 1,913.67.
The Nasdaq Composite Index was up 10.74 points, or 0.25
percent, at 4,235.82.
European shares held near multi-year highs, with the
pan-European FTSEurofirst 300 index closing up 0.1
percent at 1,379.05, within a whisker of a near six-year high of
1,380.52 reached this week.
The euro, which had fallen around 2 percent against
the dollar over the same period, consolidated just above a
three-month low of $1.3584.
Yields on benchmark 10-year Treasuries last
traded at 2.441 percent. The yield on 30-year bonds
was near 3.273 percent, an 11-1/2-month trough.
"The bond market is priced in for a pretty weak economy
already. Everybody knew it was going to be a contraction even
though it's a bigger drop than what they had thought. There's
not more room for yields to move lower," said Craig Dismuke,
chief economic strategist at Vining Sparks in Memphis,
Gold extended losses to a third straight session, hitting
16-week lows as the dollar hovered near a two-month high, while
weak physical demand in top buyer China also weighed.
Spot gold fell to $1,251.50 an ounce - its lowest
since Feb. 4 - in early trade and was down 0.4 percent at
$1,253.33. It dropped nearly 3 percent over the past two
Oil rose on signs of stronger demand from top oil consumer
the United States. Brent was up 44 cents at $110.25 a
barrel after losing 21 cents on Wednesday. U.S. crude oil
gained $1.07 to $103.79.
(Reporting by Angela Moon; Editing by Dan Grebler)