* Global shares rebound after U.S. consumer confidence data
* Safe-haven government debt rises, Bunds near record lows
* Oil slides on weak Chinese industrial production data
By Herbert Lash
NEW YORK, May 11 (Reuters) - Commodity prices fell on Friday after weak data from China reduced demand expectations while global stocks were buffeted by Europe’s debt crisis and data that showed U.S. consumer sentiment rose to its highest level in more than four years.
European and U.S. stocks rebounded after the Thomson Reuters/University of Michigan survey showed that despite a recent slowdown in job growth, nearly twice as many Americans reported hearing about new job gains than recent job losses.
“Some of it is lower gasoline prices and some of it is an improving job picture,” said Gus Faucher, senior macroeconomist at PNC Financial Services in Pittsburgh. “Households are feeling more comfortable. It’s pretty good news for consumer spending.”
The Dow Jones industrial average was up 34.51 points, or 0.27 percent, at 12,889.55. The Standard & Poor’s 500 Index was up 4.97 points, or 0.37 percent, at 1,362.96. The Nasdaq Composite Index was up 24.63 points, or 0.84 percent, at 2,958.27.
The FTSEurofirst index of top European stocks pared losses to trade near break-even, up 0.05 percent to 1019.59 points.
The MSCI world equity index also traded flat at 315.98.
The rise in global risk sentiment led the euro to extend gains against the U.S. dollar and hit a session high.
The euro hit a high of $1.2957 and last traded at $1.2950, up 0.1 percent on the day.
The gains in global stocks offset dour news from Europe, where uncertainty over Europe pushed government debt prices higher, with German Bund futures hitting record highs at one point.
The price of crude oil, copper and gold all fell, and an unexpected fall in U.S. producer prices helped debt prices climb.
Plans to support Spain’s troubled banks failed to convince investors, and the Greek stock market dropped to levels last seen 20 years ago during an earlier crisis over a mechanism to reduce exchange rate swings in Europe before the euro’s advent.
German Bund futures rose as high as 143.09, up 48 ticks on the day.
The benchmark 10-year U.S. Treasury note was up 4/32 in price to yield 1.86 percent.
Crude prices fell below $112 a barrel early in the session after a weak reading of industrial growth in China sparked worries that demand may slow from the world’s No. 2 oil consumer.
Chinese industrial output expanded at its slowest annual pace in April in nearly three years. When paired with poor trade figures on Thursday, the data suggest China’s economy continues to slow after a weak first-quarter performance.
Brent crude futures for June delivery lost 23 cents to $112.50 a barrel.
The U.S. light sweet June contract dropped 38 cents to $96.70 a barrel.
The U.S. dollar index traded flat at 80.113, and against the Japanese yen, the dollar was up 0.03 percent at 79.920.