* Rising stocks on Wall Street lead European shares to
* Brent crude slips below $115 a barrel, gold prices also
* Euro rebounds as dollar trades near six-weak highs
By Herbert Lash
NEW YORK, Sept 4 Global equity markets rose,
lifted by a surge on Wall Street, and gold prices eased on
Wednesday as investors took in stride a potential limited
American military strike against Syria and data from around the
globe suggested an improving world economy.
U.S. auto sales were on a pace to post a gain as high as 17
percent in August as the industry raced toward its best month
since just before the start of the 2007-2009 recession.
The dollar hovered near a six-week peak against a basket of
currencies as encouraging U.S. manufacturing data on Tuesday
reinforced expectations that the Federal Reserve would cut back
its economic stimulus later this month.
Brent crude drifted lower and gold prices fell below $1,400
A gain of almost 1 percent on Wall Street led share prices
in Europe to rebound. MSCI's measure of global equity markets
rose 0.7 percent and the pan-European Eurofirst
300 index of leading shares closed 2 percent higher.
"People hope there will just be a tactical strike and that's
it," said Mark Grant, managing director at Southwest Securities
in Fort Lauderdale, Florida. "But there are worries about
retaliation and a wider conflict isn't priced into the market."
The Dow Jones industrial average was up 109.92
points, or 0.74 percent, at 14,943.88. The Standard & Poor's 500
Index was up 14.05 points, or 0.86 percent, at 1,653.82.
The Nasdaq Composite Index was up 32.99 points, or 0.91
percent, at 3,645.60.
Stocks were buoyed by U.S. trade data that suggested
economic growth this quarter. Euro zone businesses had their
best month in more than two years in August as orders increased
for the first time since mid-2011, while growth in China's
services sector hit a five-month high.
The euro pared losses to rise against the dollar, up
0.36 percent at $1.3216, while the dollar index was down
0.3 percent at 82.117.
Oil prices edged lower. While Syria is not a big oil
producer, investors worry a U.S. strike against the country
could spread unrest in the Middle East and disrupt supplies from
the region, which pumps a third of the world's crude.
Brent crude fell 40 cents to $115.28 a barrel. U.S.
crude fell $1.02 to $107.52 a barrel.
"If the U.S. does strike Syria it is likely to be very
limited and not involve any ground troops or escalation. As
such, the unintended consequences from such an attack are also
likely to be limited," said Dominick Chirichella of Energy
U.S. government debt prices traded near break-even as
bargain-minded investors emerged to help stabilize a market that
has been on edge over the possibility the Federal Reserve will
reduce its bond-buying program.
The benchmark 10-year U.S. Treasury note was
down 3/32 in price to yield 2.8744 percent.
In Europe, underlying sentiment for top-rated Bunds remained
firm, as concern over Syria outweighed this week's
forecast-beating European and U.S. manufacturing data, which
reinforced bets the Fed would soon pare its bond purchases.
Bund futures closed 12 ticks higher at 139.73, off
a session high of 139.96.