02/02/2012 - 19:32
(Updates prices)
* Euro, stocks seesaw on lack of progress in Greek talks
* New U.S. jobless claims drop more than expected
* Oil slips on large gain in U.S. crude inventories
By Herbert Lash and Luciana Lopez
NEW YORK, Feb 2 (Reuters) - Stocks and the euroseesawed on Thursday as data signaling further improvement inthe U.S. labor market and remarks viewed as bullish from FederalReserve Chairman Ben Bernanke were offset by concerns overEurope's festering debt crisis.
Bernanke, in testimony to Congress, said he was seeing signsthat some of the uncertainty dampening U.S. business investment,including European banking woes, might be waning.
But Bernanke said it was too soon to say whether the UnitedStates would remain unscathed by troubles beyond its borders.
"Bernanke is a little more bullish on the economy thanexpected," said John Doyle, a currency strategist with TempusConsulting in Washington, D.C. "That sent the dollar lower andthe euro higher, but I don't know how long it will last."
The euro advanced briefly against the dollar beforetrading slightly lower at $1.3148.
The dollar slipped against a basket of major currencies,with the dollar index off 0.01 percent.
U.S. stocks seesawed in a tight range, with winners andlosers pushed by earnings reports, while a drop in U.S. joblessclaims pointed to a further, but slowly, healing labor market.
U.S. unemployment benefits fell more than expected lastweek, but investors were reluctant to make big bets before therelease on Friday of the government's monthly jobs report.
"The jobless claims continue the trend of decent news,though there have also been other indications of a general lossof momentum," said Bruce McCain, chief investment strategist atKey Private Bank in Cleveland.
"That suggests we're in the right ballpark with estimatesfor the jobs report, but also that we aren't likely to see ahuge upside surprise."
The U.S. non-farm payrolls data for January is expected toshow a rise of 150,000 jobs, according to analysts in a Reuterssurvey. That's below the 200,000 jobs added in December, as someholiday workers were laid off.
The Dow Jones industrial average was down 9.12points, or 0.07 percent, at 12,707.34. The Standard & Poor's 500Index was up 1.61 points, or 0.12 percent, at 1,325.70.The Nasdaq Composite Index was up 9.18 points, or 0.32percent, at 2,857.45.
European shares hit a fresh six-month closing high on newsof U.S. weekly jobless claims. Miner Xstrata andcommodity trader Glencore led the risers on confirmedmerger talks. Xstrata jumped 9.9 percent, and Glencore climbed6.9 percent.
The FTSEurofirst 300 index of top European shareshit a six-month closing high. The index provisionally closed up0.2 percent at 1,059.15 points.
The unresolved debt crisis in the euro zone kept investorson edge.
This week's European Union summit was "largely insufficient"in tackling the crisis, said Luxembourg's Jean-Claude Juncker,who heads the euro zone's group of finance ministers. Hedescribed Greek debt talks as "ultra-difficult."
Athens is scrambling to wrap up talks on a 130-billion-eurorescue plan and a bond swap deal before big bond redemptionscome due in March.
MSCI's all-country world equity index gained0.27 percent to 321.66. The emerging market index rose1.3 percent.
Brent oil fell as a large gain in U.S. crude inventoriessent West Texas Intermediate prices tumbling to a six-week lowahead of Friday's U.S. jobs report, a vital indicator on theeconomic recovery.
Brent crude oil traded near break-even at $111.56 abarrel. U.S. crude fell $1.88 to $95.73 a barrel.
The benchmark 10-year U.S. Treasury note was up2/32 in price to yield 1.82 percent. (Additional reporting by Richard Hubbard in London and NickOlivari in New York; Editing by Leslie Adler and Andrew Hay)
