World stocks, euro rise on rising risk appetite

Global stocks rose and the euro gained on Tuesday on a jump in US consumer confidence and after an Italian debt sale that some investors hailed despite record high rates analysts warned were unsustainable.

Stocks extended gains as did the euro against the US dollar after a measure of US consumer confidence bounced back in November from a 2-1/2 year low as fears of job and income prospects eased, fueling an increase in risk appetite.

The euro rose 0.2% to USD 1.3334.

Economist Lindsey Piegza of FTN Financial called the jump in the US Conference Board's consumer confidence index a "huge rise," but she warned of a depressed housing market, a manufacturing sector on the brink and a tight labor market.

"It seems consumers have reached some deleveraging fatigue and they're ready to release some of that pent-up demand," said Piegza, speaking in New York.

European equities and the euro rose after Italy sold all its 3-year debt that was on tap. But costs were at euro lifetime highs and above the levels at which Greece, Ireland and Portugal applied for international bailouts.

Investors hope a meeting of European finance ministers will provide a step forward to resolving the region's debt crisis.

The FTSEurofirst 300 of leading European shares was up 0.5% after briefly turning negative.

Wall Street rallied, helped by strong retail sales over the long Thanksgiving weekend, another sign that the US economy remains on the path of recovery.

The Dow Jones industrial average was up 81.63 points, or 0.71%, at 11,604.64. The Standard & Poor's 500 Index was up 9.64 points, or 0.81%, at 1,202.19. The Nasdaq Composite Index was up 10.00 points, or 0.40%, at 2,537.34.

"There is some optimism over the retail sales activity over this past weekend," said David Coard, head of fixed-income sales and trading at The Williams Capital Group in New York.

Losses in the US treasury market were limited because "it is not like there is any comfort talk coming out of Europe."

US Treasury debt prices slipped as signs of a pickup in U.S. consumption eroded the safe-haven value of government debt. The benchmark 10-year US treasury note was down 20/32 in price to yield 2.04%.

Crude oil prices pushed higher, lifted by initial enthusiasm over Italy's bond auction and as Iranian protesters stormed the British embassy in Tehran.

Brent crude futures rose USD 1.31 to USD 110.31 a barrel and US crude futures gained USD 1.00 to USD 99.21 a barrel.

Gold prices rebounded. Spot gold prices rose USD 3.64 to USD 1,715.30 a barrel.