(Updates prices, changes comment, dateline from previous
* Oil prices gain ahead of expected output cuts
* U.S. consumer data gives extra support to stocks
By Rodrigo Campos
NEW YORK, Dec 27 Stocks edged higher on Tuesday
as trading in some of the world's major financial markets
resumed after a Christmas break, with oil also up on looming
Trading volume across markets was expected to remain thin as
it usually is in the week between Christmas and New Year's.
Concerns about Italian banks, Chinese growth and U.S.
President-elect Donald Trump's protectionist bent look set to
keep investors on edge into the start of 2017.
But expectations that the incoming White House
administration will splash out on a fiscal boost for the U.S.
economy also has markets betting on inflation and more growth
overall that could benefit companies globally.
Tuesday data showed American consumers' confidence shot to
its highest in more than 15 years in December as they saw more
strength ahead in business conditions, stock prices and the job
market, while house prices continued their steady recovery in
"It is a bit of a catch-up rally today, with leadership
today coming from areas such as healthcare and technology -
those that have not participated fairly in the rally," said Eric
Wiegand, senior portfolio manager at the Private Client Reserve
at U.S. Bank.
The Dow Jones industrial average rose 16.53 points,
or 0.08 percent, to 19,950.34, the S&P 500 gained 5.55
points, or 0.25 percent, to 2,269.34 and the Nasdaq Composite
added 27.43 points, or 0.5 percent, to 5,490.12.
The pan-European FTSEurofirst 300 index edged up
0.08 percent, while MSCI's gauge of stocks across the globe
gained 0.15 percent.
Emerging market stocks rose 0.24 percent.
Earlier, MSCI's broadest index of Asia-Pacific shares
outside Japan had risen 0.2 percent while
Japan's Nikkei closed little changed.
The U.S. dollar rose against the yen on the
stronger-than-expected U.S. housing data and expectations for a
hawkish Federal Reserve, but remained below a recent 10-month
high in thin trading.
The yen fell following the inflation numbers but was
still around 1 yen above lows hit after the U.S. Federal Reserve
raised dollar interest rates two weeks ago.
The dollar index gained 0.03 percent. The euro rose
0.03 percent to $1.0456.
The 10-year U.S. Treasury yield hit a session
high at 2.576 percent. Benchmark 10-year notes last
fell 9/32 in price to yield 2.5707 percent.
"The (economic data)numbers were stronger than expected so
that kind of puts you in a direction, and the thinness in this
market probably puts you this far in that direction," said Lou
Brien, market strategist at DRW Trading in Chicago.
"It doesn't take much selling or buying to push it one way
or another this week."
Oil prices rose with support from expectations of tighter
supply once the first output cut deal between OPEC and non-OPEC
producers in 15 years takes effect on Sunday.
U.S. crude last rose 1.4 percent to $53.75 a barrel
and Brent traded at $55.85, up 1.3 percent on the day.
Trading was thin on Tuesday, with less than one-third of the
usual volume in futures contracts in West Texas Intermediate
"Some of the doubts (in OPEC) people are showing are going
to have to be put to rest," said Phil Flynn, analyst at Price
Futures Group in Chicago. "There's a strong possibility that
we're going to rally into the end of the year."
Spot gold edged up and was last up 0.28 pct at
$1,136.74 an ounce.
(Reporting by Rodrigo Campos, additional reporting by Dion
Rabouin, Alex Lawler and David Gaffen and Yashaswini Swamynathan
in Bangalore; Editing by Nick Zieminski)