GLOBAL MARKETS-Oil, global stocks rise before Fed statement

                                
   * Stocks gain on low inflation, delay in tight bank rules
                                
 * Dollar turns from 2-1/2-month high before Fed statement
                                
 * Oil rises 3 pct to top $73 on U.S. crude stocks drop
                                
 * Bonds firm on in-line CPI ahead of Fed statement
 (Updates with U.S. markets, changes byline, dateline, previous
LONDON)
                                
 By Herbert Lash
                                
 NEW YORK, Dec 16 (Reuters) - Equities rose worldwide on
Wednesday after a benign reading of U.S. inflation and news
that global regulators will delay stricter rules on banking
capital, while oil rose on a sharp fall in U.S. crude
inventories.
                                
 Investors' appetite for risky assets jumped but trading
volumes remained low as they awaited a statement after the U.S.
Federal Reserve ends its last monetary policy meeting of 2009.
                                
 The Fed -- the U.S. central bank -- is expected to
reiterate a pledge to keep benchmark interest rates low for an
extended period even as it acknowledges signs of economic
healing. For details see: [ID:nN11491543].
                                
 Shares of major Japanese banks surged and European bank
shares <.SX7P> rose 1.3 percent on relief that banks will have
more time to adjust to new rules being drafted by the Basel
Committee on Banking Supervision. [ID:nnTOE5BF01O]
                                
 Three people with knowledge of the matter said the
committee would stick to a plan to gradually implement changes
starting in 2012, and give banks a transition period.
                                
 U.S. stocks rose after a moderate increase in consumer
prices last month bolstered expectations the Fed would keep its
accommodative monetary stance to foster growth. [ID:nN1662944]
                                
 Sectors underpinning the advance of U.S. stocks included
energy, whose components jumped in sync with oil prices after
data showed U.S. crude inventories fell more than expected last
week.
                                
 Before 1 p.m. (1800 GMT), the Dow Jones industrial average
<.DJI> was up 28.50 points, or 0.27 percent, at 10,480.50. The
Standard & Poor's 500 Index <.SPX> was up 6.39 points, or 0.58
percent, at 1,114.32. The Nasdaq Composite Index <.IXIC> was up
14.31 points, or 0.65 percent, at 2,215.36.
                                
 New U.S. home construction rose less than expected in
November, damping speculation the Fed may be forced to raise
rates after a recent strong run of U.S. data, which helped send
the euro to a 2-1/2-month low on Tuesday.
                                
 The dollar fell as traders' inability to push the euro
below $1.45 prompted traders to square positions ahead of the
Fed statement later in the day. [ID:nN1659169]
                                
 "I don't think the Fed will want to say too much that rocks
the boat at this time of the year," said Firas Askari, head of
FX trading at BMO Capital Markets in Toronto.
                                
 The dollar was down against a basket of major currencies,
with the U.S. Dollar Index <.DXY> down 0.24 percent at 76.777.
                                
 The euro <EUR=> rose 0.15 percent at $1.4555, and against
the yen, the dollar <JPY=> was up 0.07 percent at 89.68.
                                
 The U.S. Energy Information Administration, the statistical
arm of the Department of Energy, said crude inventories
declined by 3.7 million barrels last week, eclipsing analysts
expectations for just a 1.8 million barrel fall. [EIA/S]
                                
 "This report was bullish across the board, with the big
draw in crude oil and distillates," said Mike Zarembski, senior
commodities analyst for OptionsExpress in Chicago.
                                
 U.S. light sweet crude oil <CLc1> rose $2.14 to $72.83 a
barrel.
                                
 Gold rose towards $1,140 an ounce as the euro hit session
highs against the dollar as risk appetite sharpened.
                                
 Spot gold prices <XAU=> rose $11.00 to $1135.00 an ounce.
                                
 Industrial metals rallied with copper rising to its highest
in a week on a weaker dollar and as investors bet on improved
metals demand next year. [ID:nLDE5BF0N0]
                                
 Nickel touched its highest in about a month, while zinc
rose over 4 percent to hit a two-week high. Aluminum climbed
towards its 14-month high struck this week.
                                
 U.S. Treasury debt prices traded higher after the data on
consumer prices and housing starts soothed concerns over a
feared resurgence in inflation. [ID:nN1663897]
                                
 The benchmark 10-year U.S. Treasury note <US10YT=RR> was up
11/32 in price to yield 3.55 percent.
                                
 The Nikkei share average closed at a seven-week high, up
0.9 percent <.N225>, leading Asian stock markets on speculation
banks may not have to raise more capital in the near term.
                                
 The MSCI index of Asia Pacific stocks outside Japan was
down 0.8 percent <.MIAPJ0000PUS>, weighed by the materials and
consumer staples sectors.
 (Reporting by Ellis Mnyandu, Steven C. Johnson, Richard Leong
and Ellen Freilich in New York and David Sheppard, Atul
Prakash, Tamawa Desai and Jan Harvey in London; Writing by
Herbert Lash; Editing by James Dalgleish)