Reuters: US Dollar Report: GLOBAL MARKETS-Shares grind higher, gold pauses from big losing streak

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GLOBAL MARKETS-Shares grind higher, gold pauses from big losing streak May 20th 2013, 15:26 Mon May 20, 2013 11:26am EDT * Global equity markets continue to climb * Yen gains on minister's comments, rise seen temporary * Gold gains after longest losing streak in four years * Oil rebounds, rises above $104 a barrel (Adds opening of U.S. markets, changes dateline; previous LONDON) By Herbert Lash NEW YORK, May 20 (Reuters) - Global equity markets rose on Monday as investors sought better returns in stocks, while uncertainty over the Federal Reserve's stimulus program caused gold to pause from its longest losing streak in four years. Despite major U.S. and European stock indices being up double digits - the American benchmark S&P 500 index is almost 17 percent higher so far this year - investors still see better returns ahead in equities than elsewhere. Deals such as Yahoo's $1.1 billion bid for Tumblr indicate that companies continue to search for growth through acquisitions despite record high share prices, a bullish sign for stocks. "We got a lot of merger announcements this morning. It means there's a lot of appetite for equities and that's good for the market," said Giri Cherukuri, head trader at OakBrook Investments LLC in Lisle, Illinois. "Stocks are not too over-valued and the economy is getting better," he said. "As long as the economy continues to improve, the market should be able to maintain these levels." The Dow Jones industrial average was up 16.54 points, or 0.11 percent, at 15,370.94. The Standard & Poor's 500 Index was up 2.58 points, or 0.15 percent, at 1,670.05. The Nasdaq Composite Index was up 6.61 points, or 0.19 percent, at 3,505.58. MSCI's all-country world equity index rose 0.41 percent to its highest since June 2008, while the FTSEurofirst-300 index of leading European shares rose 0.24 percent to 1251.23. Gold was on track for its longest run of losses since March 2009, weighed by speculation that the Fed might rein in its economic stimulus program. Investors have been dumping gold, which is down about 20 percent this year, while stocks and the dollar have risen on an improving global economic outlook. Gold-backed exchange-traded funds have had massive outflows in recent months. The beginning of the end of the Fed's massive bond-buying program might come sooner than many investors think if recent gains in the U.S. labor market do not prove fleeting. Spot gold hit a low of $1,338.95 an ounce on Monday, its weakest since April 16, but later rebounded, rising $4.70 to $1,363.40 an ounce. The yen rose from a 4-1/2-year low against the dollar after Japan's economy minister suggested the currency may have weakened enough, leading some investors to pare bets against it. The yen's slight reprieve came after Economy Minister Akira Amari said its excessive strength had largely corrected and further weakness could damage Japan's economy. But analysts said any sharp dip in the dollar against the yen was a buying opportunity as Tokyo was committed to easier monetary policy. The dollar was last 0.5 percent lower at 102.41 yen, having hit a trough of 102.19. The euro rose against the dollar, up 0.4 percent at 1.2862. U.S. government debt prices slipped after an early rebound from last week's sell-off as the dollar weakened against the yen. The benchmark 10-year U.S. Treasury note was down 2/32 in price to yield 1.9594 percent. Brent crude traded near break-even, weighed by ample supplies, weaker demand for fuel and a strong dollar. Brent crude for July was up 37 cents at $105.01 a barrel. U.S. crude rose 74 cents to $96.76. (Reporting by Herbert Lash; Editing by Dan Grebler) Link this Share this Digg this Email Reprints

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