* U.S. shares buck global trend, rise on stock upgrades
* U.S. dollar climbs as appetite for risk wanes again
* Oil falls toward $72 a barrel as dollar gains
* Bonds ease as issuance concerns fill data void (Updates with close of U.S. markets)
By Herbert Lash
NEW YORK, Sept 18 (Reuters) - U.S. stocks rose on corporate profit hopes, but global equities faltered and crude oil slipped toward $72 a barrel on Friday, as the U.S. dollar rebounded from a one-year low on waning risk appetite.
Oil fell as dealers took profits from a 5 percent rally earlier in the week and the dollar rose as investors trimmed their positions ahead of holidays in Japan and Singapore next week. For details see [ID:nN18534676] and [ID:nN18264635].
Analysts said a lack of conviction that the global economic downturn was indeed ending had dragged down oil and some equity markets on expectations that fuel demand could stay weak.
World equities came under pressure after scaling an 11-month peak as investors took stock of recent hefty gains. The MSCI all-country world index <.MIWD00000PUS> fell 0.2 percent after touching a high last seen in early October.
But Wall Street rebounded from earlier losses as investors
bet the recovery will be strong enough to sustain corporate
profits. Procter & Gamble
For the week, all three major U.S. stock gauges rose more than 2 percent.
"On a short-term basis the market is due for a pause, but the underlying tone of the market and the economy is positive at present," said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut.
Procter & Gamble Co
The Dow <.DJI> closed up 36.28 points, or 0.37 percent, at 9,820.20. The Standard & Poor's 500 Index <.SPX> gained 2.81 points, or 0.26 percent, at 1,068.30. The Nasdaq Composite Index <.IXIC> rose 6.11 points, or 0.29 percent, at 2,132.86.
Analysts said the trend for broad dollar weakness was likely to persist. The dollar has sold off sharply this month as investors shifted into riskier assets on increasing signs of a global recovery. The prospect of low U.S. yields and concerns about the U.S. fiscal deficit have fueled dollar selling.
"Today overall has been a retracement day and a profit-taking day," said Andrew Busch, a global FX strategist at BMO Capital Markets in Chicago. "(But) I don't see anything on the horizon just yet that would take us out of this sell-the-U.S.-dollar mode."
U.S. crude for October delivery
U.S. Treasury debt prices slipped as dealers cut prices to clear out inventory before underwriting the auction of $112 billion in new notes next week. [ID:nN18534676]
Bond losses widened in thin afternoon trade as participants left for the weekend and for religious observance. Rosh Hashana, the Jewish New Year holiday, begins Friday evening.
U.S. government debt sagged on the prospect of heavy
supply. Benchmark 10-year notes
"People looked ahead to next week's supply and there is still some talk that the Fed will tighten monetary policy sooner than some people thought and that there is a greater divergence of opinion on the FOMC than most people thought," said Cary Leahey, economist at Decision Economics in New York.
Gold ended lower on profit taking, capping a volatile week in which the metal set an all-time high of $1,030.80 an ounce as a steadily falling dollar boosted investment demand.
U.S. December gold futures
European shares pulled back from an 11-month high set on Thursday as commodity stocks slipped, but Britain's leading share index logged a sixth straight session of gains, supported by an early rise on Wall Street.
The FTSEurofirst 300 <.FTEU3> of top European shares closed 0.5 percent lower at 1,006.50.
The FTSE 100 <.FTSE> in London closed up 0.2 percent at 5,172.89, another 12-month closing high.
Asian stocks retreated from 13-month highs as a conflicting picture about the strength of a U.S. economic recovery stopped investors from extending this week's rally.
The Nikkei index <.N225> fell 0.7 percent, breaking a three-day rally, while the MSCI index of Asia Pacific stocks traded outside Japan <.MIAPJ0000PUS> dipped 0.6 percent. (Reporting by Chuck Mikolajczak, Nick Olivari and Pedro Nicolaci da Costa in New York and Chris Baldwin and Dominic Lau in London; Writing by Herbert Lash; Editing by James Dalgleish)