* MSCI world equity up 0.8 pct at 271.19
* German, French return to growth boosts Europe shares
* Euro zone GDP fall smaller than originally expected
* Euro, commodities gain ground; dollar lower after Fed
By Blaise Robinson
PARIS, Aug 13 (Reuters) - World stocks, commodities and the
euro rose on Thursday as Germany and France surprised investors
by reporting a return to GDP growth, while the dollar dipped
after the Federal Reserve's less gloomy outlook for the U.S.
economy.
Overall the euro zone remained just in recession in the
second quarter, data showed on Thursday, although the 0.1
percent drop in GDP was much smaller than originally expected.
Germany and France provided the big shock by ending their
recessions in April-June, earlier than many policymakers and
economists had expected. []
Gross domestic product in the euro zone's two biggest
economies rose unexpectedly by 0.3 percent in the quarter,
boosting hopes of a lasting recovery and sending the euro rising
against the dollar and yen. []
"(The GDP figures are) better than expected and that
supports the euro a little bit," said Antje Praefcke, currency
strategist at Commerzbank in Franfurt. "But overall, it's still
the effect of post-Fed trading with stocks being a little more
on the positive side."
The euro climbed 0.4 percent to $1.4262 <EUR=> and was up
0.9 percent against the yen at 137.60 <EURJPY=R>.
The dollar drifted lower as investors switched to riskier
assets such as commodities after the Fed on Wednesday gave its
clearest statement to date that it saw the U.S. recession
nearing an end. It was down a quarter percent against a basket
of major currencies <.DXY>.
The Fed said the U.S. economy was showing signs of levelling
out two years after the onset of the deepest financial crisis in
decades and it moved to phase out one emergency measure.
It is the first time since August 2008 that the Fed's
statement has not characterized the economy as contracting,
weakening, or slowing. But it cautioned that the economy remains
fragile as employers continue to cut jobs and businesses trim
investment. []
World stocks as measured by MSCI <.MIWD00000PUS> were up 0.8
percent on Thursday.
The FTSEurofirst 300 <> index of top European shares
was up 1 percent at 951.34 points, led by banking shares such as
UBS <UBSN.VX> and Deutsche Bank <DBKGn.DE>, while mining shares
such as Rio Tinto <RIO.L> and Anglo American <AAL.L> rallied
along with metal prices.
Japan's Nikkei share average <> rose 0.8 percent,
driven higher by big auto exporters and tech shares.
COMMODITIES ON THE RISE
The more positive Fed comments on the economy had pushed key
U.S. stock indexes up more than 1 percent overnight, though
shares lost steam near the end of the session. []
At 0917 GMT on Thursday, futures for the S&P 500 <SPc1> were
up 0.9 percent, Dow Jones <DJc1> futures were also up 0.9
percent and Nasdaq 100 <NDc1> futures were up 0.8 percent.
Oil <CLc1> gained $1.26 to $71.43 a barrel, helped by the
upbeat data from Germany and France which fed optimism that the
global economy was through the worst of the recession,
overshadowing bearish U.S. inventory data.
Copper prices <MCU3> soared to their highest level since
October, on a flurry of investor buying in the wake of the Fed's
less gloomy comments on the U.S. economy.
Aluminium <MAL3> was also on the rise, while nickel <MNI3>
touched reached its highest since late August 2008.
The yield on the benchmark 10-year U.S. Treasury note
<US10YT=RR> was 3.73 percent, relatively unchanged from late on
Wednesday in New York. The 30-year yield <US30YT=RR> was also
almost unchanged at 4.54 percent, ahead of a $15 billion auction
of that maturity later.
(Additional reporting by Ian Chua in London; editing by David
Stamp)
