* MSCI world equity index up 0.6 pct at 297.75
* Gold hits record high; oil, other commods higher
* Dollar under pressure, near 15-month low
By Natsuko Waki
LONDON, Nov 16 (Reuters) - World stocks rose on Monday while
gold, oil and other commodities rallied as upbeat economic data
and a weakening dollar underpinned raw material prices and
related shares.
Friday's data showing a wider U.S. trade deficit and weaker
consumer sentiment weighed on the dollar, which is already under
pressure from expectations that the Federal Reserve will leave
interest rates near zero for some time to come.
A weaker U.S. currency encourages investors to buy
dollar-priced commodities, which also benefit from expectations
for a strong global economic recovery.
Data on Monday showed Japan's economy grew 1.2 percent in
July-September from the previous quarter, its fastest pace in
more than two years, as stimulus lifted consumer spending and
capital spending rose. []
"The (stock) market is on an uptrend which could easily take
the market another 10 to 15 percent higher till the year end. We
are basically in the midst of an year-end rally," said Franz
Wenzel, strategist at AXA Investment Managers in Paris.
MSCI world equity index <.MIWD00000PUS> rose 0.6 percent
while the FTSEurofirst 300 index <> gained 0.8 percent
towards a recent 13-month high. Mining shares, such as BHP
Billiton <BLT.L>, rallied as gold <XAU=> hitting a fresh record
high above $1,132 an ounce <XAU=>.
Emerging stocks <.MSCIEF> gained 1.5 percent.
U.S. stock futures were up around 0.7 percent <SPc1>,
pointing to a firmer open on Wall Street later.
DOLLAR UNDER PRESSURE
The dollar fell 0.4 percent against a basket of major
currencies <.DXY>, holding just above last week's 15-month low,
while the euro rose 0.3 percent to $1.4971 <EUR=>.
Kansas City Fed President Thomas Hoenig said the U.S.
economy still faced significant weakness, while warning that
large financial institutions must be allowed to fail.
Some lingering speculation that China allow the yuan to
strengthen also weighed on the dollar.
The United States and China sparred over exchange rates at a
meeting of Asia Pacific leaders on Sunday, pointing to tricky
talks ahead for President Barack Obama when he flies to China to
address economic tensions.
"If anything, the Chinese authorities will renew the yuan
appreciation trend when it is least expected and the last thing
they will do is to appear to be bowing to U.S. or international
pressure," Calyon said in a note to clients.
"The Chinese authorities are concerned about hot money flows
and do not want to give the impression that they are embarking
on an aggressive revaluation path."
U.S. crude oil <CLc1> rose 1.5 percent to $77.47 a barrel.
Platinum <XPT=> and palladium prices <XPD=> rallied to their
highest levels in more than a year.
The September Bund future <FGBLc1> rose 58 ticks after
European Central Bank Governing Council member Axel Weber said
market stabilisation did not mean a sustainable recovery.
The European Union's Economic and Monetary Affairs
Commissioner Joaquin Almunia said the strength and
sustainability of the recovery remained uncertain.
(Additional reporting by Dominic Lau; Editing by Andy Bruce)
