* S&P 500 hits record intraday level
* Oil pares early losses
* Spain’s IBEX rebounds from 1% decline (Updates with open of U.S. markets, changes dateline; previous LONDON)
By Chuck Mikolajczak
NEW YORK, April 29 (Reuters) - Global shares edged higher on Monday as the S&P 500 touched an intraday record after a jump in U.S. consumer spending helped offset a weak euro zone sentiment survey and political uncertainty in the wake of Spain’s elections.
Major U.S. indexes advanced modestly, with the S&P 500 topping its intraday record of 2,940.91 set on Sept. 21 with a session high of 2,946.23. The benchmark index posted a record close last week but has been unable to pierce the intraday mark.
Economic data showed U.S. consumer spending surged 0.9% in March, the most in more than 9-1/2 years, although inflation remained subdued, supporting the U.S. Federal Reserve’s recent decision to hold off on further interest rate hikes this year.
Sentiment for stocks on Wall Street was also buoyed by the brightening picture of corporate profits, putting some concerns about a possible earnings recession at bay. Refinitiv data showed a 0.2% decline in earnings reports to date for the quarter, a solid improvement from the 2% decline expected at the start of the month.
“Earnings have been OK to good,” said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.
“And, when you get that lower inflation number as well, which I think suggests no interest rate rise, there are just not enough reasons right now that investors see to sell stocks.”
The Fed is due to meet this week and will issue its latest policy announcement on Wednesday.
The Dow Jones Industrial Average fell 0.01 point, or -0%, to 26,543.32, the S&P 500 gained 2.97 points, or 0.10%, to 2,942.85 and the Nasdaq Composite added 13.24 points, or 0.16%, to 8,159.64.
European shares were slightly higher in choppy trade, as uncertainty related to the formation of a government in Spain and weak euro zone economic sentiment data exacerbated fears over slowing global growth kept gains in check.
Spain’s IBEX 35 index underperformed its peers, but had moved near the unchanged mark after falling nearly 1%, and Spanish government bond yields dipped after Prime Minister Pedro Sanchez overcame a challenge from right-wing nationalists in elections on Sunday.
The pan-European STOXX 600 index rose 0.10% and MSCI’s gauge of stocks across the globe gained 0.12%.
U.S. Treasury yields rose in the wake of the consumer spending data, while the dollar was little changed against a basket of major currencies.
Benchmark 10-year notes last fell 7/32 in price to yield 2.527%, from 2.504% late on Friday.
The dollar index fell 0.02%, with the euro up 0.14% to $1.1164.
Oil prices pared early losses of more than $1 a barrel, after dropping nearly 3% on Friday when the market tumbled after U.S. President Donald Trump demanded that producer group OPEC raise output to soften the impact of U.S. sanctions against Iran.
U.S. crude fell 0.25% to $63.14 per barrel and Brent was last at $71.64, up 0.01% on the day.
Additional reporting by Caroline Valetkevitch; Editing by Dan Grebler