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 The benchmark S&P 500 set a new closing high, closing above the
1,900 mark for the first time. MSCI's measure of global equity
performance rose to highs last seen in November 2007, just short of
all-time highs that month.
The day's gains held, contrary to beliefs there might be selling
pressure before the close as U.S. investors headed into a three-day
weekend with the Memorial Day holiday on Monday and uncertainty over
Ukraine's elections on Sunday.
"There are still some concerns out there but they're not manifesting
themselves in the VIX," said Philip Orlando, chief equity market
strategist at Federated Investors in New York. "There's a lot of
complacency in the market at a point where the market has had a nice
little bounce back into the 1,900 area."
The CBOE Volatility Index <.VIX>, closed down 5.6 percent at 11.36,
its lowest level since March 2013.
Sales of new U.S. single-family homes rose more than expected in
April and the number of houses on the market hit a 3-1/2 year-high,
further signs the housing recovery is poised to regain steam, the
Commerce Department said.
MSCI's all-country world index <.MIWD00000PUS> rose 0.3 percent to
418.33, about 2.4 percent from all-time peaks set in November 2007.
In Europe, the FTSEuroFirst 300 index of leading regional shares
<.FTEU3> closed up 0.21 percent to 1,369.17.
The Dow Jones industrial average <.DJI> closed up 63.19 points, or
0.38 percent, at 16,606.27. The S&P 500 <.SPX> rose 8.04 points, or
0.42 percent, to 1,900.53 and the Nasdaq Composite <.IXIC> added
31.466 points, or 0.76 percent, to 4,185.808.
For the week, the Dow rose 0.7 percent, the S&P 1.2 percent and the
Nasdaq gained 2.3 percent.
Traders sought safe-haven bonds on the belief that elections in
Greece and Ukraine could result in market volatility, including
renewed worries of a Greek exit from the euro and the potential for
greater tensions surrounding Ukraine.
"European parliamentary elections and Ukraine elections are key
events in the near term which could be driving people into the
safety of U.S. Treasuries," said Robbert Van Batenburg, director of
market strategy at Newedge USA LLC in New York.
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If Greece's leftist Syriza party wins, its leaders could reject the
government's austerity policies and threaten to leave the euro zone,
he said. If pro-separatist voters in eastern Ukraine fail to
participate, it could stoke further tensions between Russia and
Ukraine.
U.S. government bond prices rose, with the 10-year note up 5/32,
yielding 2.5356 percent.
The euro touched a three-month low of $1.3614 and a 17-month trough
against the pound after soft German business sentiment stoked
expectations the European Central Bank will lower interest rates
next month.
Concerns that Sunday's European Union election results could
destabilize some euro zone governments also weighed on the euro.
The euro was last at $1.3627, down 0.2 percent. The dollar gained
0.24 percent against the yen at 101.96.
Brent crude held above $110 a barrel as U.S. crude futures pushed
higher, supported by the crises in Ukraine and Libya as well as
positive economic data in the world's top two oil consumers, the
United States and China.
Brent settled up 18 cents at $110.54 a barrel. U.S. crude gained 61
cents to $104.35.
Both Brent and U.S. crude futures posted consecutive weekly gains.
(Reporting by Herbert Lash; Editing by Nick Zieminski, Meredith
Mazzilli and Dan Grebler)
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