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By Katanga Johnson
WASHINGTON (Reuters) - Global equities set both an intraday high and record close on Tuesday as investors weighed the latest U.S. economic data for signs of a rebound and rising inflation, while Wall Street's main indexes wavered before ending little changed.
Energy shares were among the best performing during the session as the OPEC+ alliance agreed to hike output in July and gave a bullish forecast. U.S. crude futures rose to their highest in more than two years. The dollar ended little changed, while Treasures, gold and bitcoin slipped. Financial shares countered declines in healthcare.
The pan-European STOXX 600 index rose 0.75% and MSCI's gauge of stocks across the globe gained 0.32%.
Emerging market stocks rose 1.06%. MSCI's broadest index of Asia-Pacific shares outside Japan closed 0.87% higher, while Japan's Nikkei lost 0.16%.
"The major equity market indices may have finished the day roughly unchanged, but look no further than energy and oil markets for evidence that the reopening trade is alive and well," said Elyse Ausenbaugh, a global market strategist and JPMorgan Private Bank.
The Dow Jones Industrial Average rose 45.86 points, or 0.13%, to 34,575.31, the S&P 500 lost 2.07 points, or 0.05%, to 4,202.04 and the Nasdaq Composite dropped 12.26 points, or 0.09%, to 13,736.48.
Investors cheered signs of an improving economy ahead of a week packed with major data they hope to cast light on the economic recovery, analysts said.
U.S. manufacturing activity picked up in May, the Institute for Supply Management (ISM) said on Tuesday, as its index of national factory activity increased to a reading of 61.2 last month from 60.7 in April. Pent-up demand amid a reopening economy has boosted orders, but unfinished work has piled up because of shortages of raw materials and labour.
"Markets are letting the macroeconomic data lead the way with Treasury prices lower and yields higher after strong numbers this morning," said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina, adding that news of oil supplies rapidly drawing down, which will lead to higher oil prices, has prompted traders.
"They are interpreting higher yields as a signal to sell technology holdings and buy cyclical companies in the Energy, Materials and Financials sector," Zaccarelli said.
New U.S. jobs data on Friday should also give a firmer steer on near-term Fed policy action.
OIL GAINS
Brent futures settled up 93 cents, or 1.3%, to $70.25 a barrel after hitting $71 earlier in the session - its highest intra-day price since March 8. U.S. crude ended $1.40, or 2.1%, higher at $67.72.