* Wall Street dips as Wal-Mart (N:WMT) weighs
* Oil rally loses steam after inventory data
* Dollar capped vs yen after Fed Bullard's dovish comments
(Adds close of U.S. markets, oil settlement prices)
By Chuck Mikolajczak
NEW YORK, Feb 18 (Reuters) - A gauge of stocks around the
globe edged higher on Thursday, to extend its best run of the
year, as signs of a stabilization in oil prices lifted emerging
markets while earnings in Europe and the United States limited
gains.
Brent crude LCOc1 settled down 0.6 percent to $34.28 while
U.S. crude settled up 0.36 percent at $30.77 as the commodity
pared earlier gains after data showed a build in U.S. crude oil
inventories.
Brent had earlier climbed above $35 a barrel and has gained
1.5 percent so far this week after Iran welcomed plans by Russia
and Saudi Arabia to freeze output.
U.S. oil CLc1 has gained 4.5 percent so far this week.
The dollar .DXY gained slightly against a basket of
currencies even after comments on Wednesday from one of the
Federal Reserve's traditional "hawks," James Bullard, that it
would be "unwise" now for the central bank to keep hiking rates
given low inflation expectations and market volatility.
The uptick in commodities and stall in dollar strength
helped boost emerging market stocks with the MSCI Emerging
market index .MSCIEF rising 1.2 percent, after touching its
highest level in six weeks.
"Oil prices rising, it helps emerging markets, the notion
that the Fed has no rate hike in March, it helps emerging
markets," said Quincy Krosby, market strategist at Prudential (L:PRU)
Financial in Newark, New Jersey.
"Right now, over $30 (oil) is helpful for the tone in the
market."
Economic data continued to indicate labor market strength,
keeping rate hikes on the table for this year, but manufacturing
activity continues to struggle.
Wall Street was lower with consumer stocks weighing on the
S&P 500 after Wal-Mart WMT.N reported a decline in quarterly
earnings and cut its full-year forecast. IBM (N:IBM) IBM.N advanced
after a Morgan Stanley (N:MS) upgrade and helped cap losses.
The action in stocks followed the best three-day run for the
S&P 500 since August. MSCI's index of world shares
.MIWD00000PUS was up 0.06 percent and is up 5 percent over the
past four sessions, its best four-day run since October.
The Dow Jones industrial average .DJI fell 40.61 points,
or 0.25 percent, to 16,413.22, the S&P 500 .SPX lost 8.99
points, or 0.47 percent, to 1,917.83 and the Nasdaq Composite
.IXIC dropped 46.53 points, or 1.03 percent, to 4,487.54.
European equities fell back in a choppy session after
climbing to a two-week high on Thursday, as gains in tech shares
were counteracted by a decline in commodity related stocks in
the energy and mining sectors.
The pan-European FTSEurofirst 300 .FTEU3 index shed 0.14
percent as the overall earnings picture remained weak.
Europe's session was volatile as EU leaders began a two-day
summit in Brussels. But the mood improved after European
Commission President Jean-Claude Juncker said he was "quite
confident" a deal would be reached to keep Britain in the EU.
Prime Minister David Cameron said hard work and good will
should help him clinch a deal at the summit, described by
leaders of the 28-nation bloc as the best chance of preventing
Britain leaving.
U.S. Treasury debt prices rose as the rally in stocks was
interrupted. Benchmark 10-year Treasury notes US10YT=RR last
traded 21/32 higher in price for a yield of 1.7448 percent.
The euro slipped 0.32 percent versus the greenback EUR= at
$1.1091 and the yen JPY= was up 0.74 percent against the
dollar at 113.24.
Safe-haven gold XAU= added 2.2 percent to $1,234.76.