(Repeats with no changes to text or headline)
* Global equities rally on growing optimism over Europe
* Treasuries prices rise as investors still fearful
* Euro slips on profit-taking after this week's rally
(Updates with close of U.S. markets)
By Herbert Lash
NEW YORK, Sept 16 Global equities rose for a
fourth straight day on Friday, but the euro slid as hope Europe
was finally getting a grip on the region's debt crisis was
offset by lingering fears Greece is still at risk of default.
The Nasdaq stock market posted its biggest weekly advance
since July 2009, and gains elsewhere in global equity markets
suggested risk aversion has dissipated.
The euro EUR= headed for its best week in eight against
the U.S. dollar, even as it slipped 0.7 percent to $1.3785 on
Friday. The announcement on Thursday that the world's leading
central banks will boost short-term dollar funding for European
banks facing a dollar shortage buoyed the euro.
"The market seems to be a little bit more reassured that
(their) support will not allow for major disruption in Europe,"
said Natalie Trunow, chief investment officer of equities at
Calvert Investment Management in Bethesda, Maryland, which
manages about $14.8 billion in assets.
A sharp decline in French and Italian banking stocks, along
with the euro's slide, showed caution still lingers despite
encouraging signs of growing efforts to resolve the debt
But even though central bank support for funding European
banks eased fears that Greece's fiscal woes might bring down
the financial system in Europe, no one suggested the crisis was
"There is still a lot of open-ended issues out there, which
means this situation will remain pretty fluid," said Mark
Luschini, chief investment strategist at Janney Montgomery
Scott in Philadelphia.
"All of what we just gained in the last five trading
sessions could be given back," Luschini said, referring to Wall
Street, whose rally has surpassed by a day the rally in
European stock markets.
The Dow Jones industrial average .DJI closed up 75.91
points, or 0.66 percent, at 11,509.09. The Standard & Poor's
500 Index .SPX gained 6.90 points, or 0.57 percent, at
1,216.01. The Nasdaq Composite Index .IXIC added 15.24
points, or 0.58 percent, at 2,622.31.
MSCI's all-country world equity index .MIWD00000PUS rose
0.7 percent, while the FTSE Eurofirst index .FTEU3 of top
regional European shares closed up 0.6 percent at 937.85.
A rally in banks stocks lost steam, however, and the STOXX
Europe 600 Banks index .SX7P finished up 0.3 percent after
paring earlier strong gains.
BNP Paribas (BNPP.PA), France's largest listed bank, lost
7.6 percent, and UniCredit (CRDI.MI), Italy's biggest bank,
shed 7 percent. For details, see [ID:nL5E7KG24T]
U.S. bank stocks also slid, with the KBW Bank index .BKX
off 0.4 percent.
Next week's meeting of the Federal Reserve came into view,
amid speculation policy makers might provide further stimulus
to the economy.
"The news yesterday that central banks are offering dollar
liquidity to European lenders is regarded as being the start of
an accelerated process in addressing the debt crisis," said
James Dailey, portfolio manager of TEAM Asset Strategy Fund in
"With the Fed meeting next week, (the ECB news) sort of
served as a threshold. Investors are now thinking that we have
entered a process towards additional monetization."
Markets shrugged off a survey that showed even though U.S.
consumer sentiment inched up in early September, Americans
remained gloomy about the future, with a gauge of expectations
falling to the lowest level since 1980. [ID:nS1E78E0P2]
U.S. Treasury securities edged higher.
The benchmark 10-year U.S. Treasury note US10YT=RR was up
6/32 in price to yield 2.06 percent.
Brent crude fell, reversing earlier gains, as the euro
weakened and the consumer outlook fell to a 31-year low,
according to a preliminary survey of consumer sentiment by
Thomson Reuters/University of Michigan.
Brent crude for November LCOc1 settled down 8 cents at
$112.22 a barrel.
U.S. crude CLc1 took a bigger fall, settling down $1.44 a
barrel to $87.96.
"Oil investors have to be getting worried about global
demand going forward, and the risk of contagion in Europe from
Greece to other economies," said Richard Ilczyszyn of MF Global
Gold rallied as the gloomier U.S. consumer sentiment
revived the bid for safe-haven assets.
U.S. gold futures for December delivery GCZ1 settled up
$33.30 at $1,814.70 an ounce.
(Reporting by Gertrude Chavez-Dreyfuss, Emily Flitter, Joshua
Schneyer and Chris Kelly in New York and Joanne Frearson, Ikuko
Kurahone, Pratima Desai and Anirban Nag in London; Writing by
Herbert Lash, Editing by Leslie Adler)