(Updates prices, changes comment, byline)
* Oil bounces back on pickup in gasoline demand
* Safe-haven yen, government debt cut gains
* Global gauge of stocks drops, but Wall St edges higher
By Dion Rabouin
NEW YORK, Feb 24 (Reuters) - A sharp rebound in crude prices
lifted stocks on Wall Street on Wednesday, but a gauge of
equities across the globe fell on lingering concern about
economic growth.
Crude turned higher after data showed U.S. gasoline demand
spiked over the past four weeks from a year ago, and inventories
of motor fuel slid from record highs.
The S&P 500 climbed steadily after the U.S. gasoline data,
turning positive just ahead of oil's close. It was last up after
falling as much as 1.6 percent.
"As much as it frustrates people, the reality is (oil and
equities) are incredibly highly correlated and they have been
really going back to November," said Randy Frederick, managing
director of trading and derivatives for Charles Schwab (N:SCHW) in
Austin, Texas. "It's that simple."
The Dow Jones industrial average .DJI was up 36.98 points,
or 0.23 percent, to 16,468.76; the S&P 500 .SPX gained 6.33
points, or 0.33 percent, to 1,927.6, and the Nasdaq Composite
.IXIC added 30.88 points, or 0.69 percent, to 4,534.46.
The turn in the S&P contrasted with a fall in European
stocks, which were weighed by energy and commodity sector names.
The pan-European FTSEurofirst 300 share index .FTEU3 fell
2.3 percent and MSCI's gauge of stocks globally .MIWD00000PUS
fell 0.7 percent.
Nikkei futures NKc1 edged down less than 0.1 percent.
OIL REBOUNDS
Government data showed U.S. crude oil stockpiles rose by 3.5
million barrels in the United States last week to an all-time
peak. But the increased gasoline demand over the past four weeks
and a drop in inventories helped push crude futures higher.
Brent crude LCOc1 , the global benchmark, rose 3.5 percent
to $34.44 a barrel. U.S. crude CLc1 added 1 percent to $32.20.
The turn in oil and stocks pushed yields on the lowest-risk
government bonds slightly higher, though they were still lower
on the day.
Benchmark 10-year U.S. notes US10YT=RR were last up 2/32
in price to yield 1.734 percent on Wednesday. At their session
low the yield was 1.647 percent.
In currency markets, the yen, often sought by investors as a
shelter when riskier assets are under pressure, reached an
almost three-year high against the euro EURJPY= of 123.43 yen.
It was last up 0.3 percent at 123.03. At 111.82, the yen was up
0.25 percent against the U.S. dollar JPY= .
The euro EUR= dipped 0.1 percent versus the greenback to
$1.1005. The dollar index .DXY was flat.
Sterling plumbed a seven-year low of $1.3876 on concerns
Britons might vote to leave the European Union in a June
referendum. It last traded down 0.7 percent at $1.3924 GBP= .
Copper CMCU3 slipped 0.1 percent to $4,641.85 a tonne.
Gold XAU= retreated from major gains earlier in the day,
last trading up 0.1 percent. It had risen as much as 2.1
percent.