* S&P 500 touches new intraday high
* Dollar turns up on rising U.S. bond yields
* Oil at near nine-month highs
(Adds New York stock, dollar gains; changes dateline; previous
By Michael Connor
NEW YORK, June 20 Wall Street and European
equities traded at new highs on Friday while oil prices neared
nine-month peaks, spurred by violence in Iraq.
U.S. Treasuries' prices softened in early trading following
a weak sale of inflation-linked bonds, and the dollar rose as
American bond yields increased.
The Standard & Poor's 500 index of top companies hit a third
straight intraday high for its sixth day of gains, on course for
its longest winning streak since mid-April.
The Dow Jones industrial average rose 50.02 points,
or 0.30 percent, at 16,971.48. The Standard & Poor's 500 Index
was up 4.28 points, or 0.22 percent, at 1,963.76. The
Nasdaq Composite Index was up 5.47 points, or 0.13
percent, at 4,364.80.
"There continues to be this hope that the economy improves,
that growth improves. But for the markets, a slow steady growth
environment is pretty much nirvana," said Tim Ghriskey, chief
investment officer of Solaris Group in Bedford Hills, New York.
Buoyed by the billions of dollars the U.S. Federal Reserve
is still pumping into the global economy, equity markets took
heart from a sanguine message this week on inflation from Fed
chief Janet Yellen.
That effect was still dominant on Friday. All of Europe's
major exchanges inched up, although the MSCI index of world
shares dipped 0.04 percent from record highs
reached on Thursday.
The pan-European FTSEurofirst 300 index was up 0.15
percent and reached a 6 1/2-year high as drugmaker Shire rallied
on a takeover offer, putting the index on track for a 10th
straight week of gains.
U.S. Treasuries' yields rose in part on follow-through from
Thursday's weak sale of 30-year Treasury Inflation-Protected
Securities. Traders also repositioned as they adjusted
expectations of when the Fed will begin raising interest rates.
The Fed on Wednesday played down a recent uptick in
inflation, which has hurt longer-dated bonds and made the yield
"There's the thought that maybe they will let inflation run
a little bit higher and not raise rates," said Dan Mulholland,
managing director in Treasuries trading at BNY Mellon in New
Benchmark 10-year notes were last down 3/32 in
price to yield 2.63 percent, up from 2.62 percent late on
The higher yields helped the dollar, with the dollar index
up 0.16 percent at 80.444. That shaved the index's weekly
loss to 0.2 percent.
The dollar was last up 0.2 percent against the yen at 102.12
yen, while the euro slipped 0.2 percent to $1.3578
Brent oil prices dropped 28 cents to $114.78 from a
high of $115.71 touched on Thursday. U.S. oil added 61
cents to $107.04.
"The events unfolding in Iraq will continue to dictate the
direction on the market and support the oil price for the time
being at a high level," said Barbara Lambrecht, an analyst at
Commerzbank in Frankfurt.
(Reporting by Michael Connor in New York; Editing by Dan