* MSCI world equity index up 0.5 pct
* Gold hits record high, dollar falls
* U.S. Fed expresses confidence in sustainable recovery
By Jessica Mortimer
LONDON, Nov 25 (Reuters) - World stocks rose while gold hit
another record high and the dollar weakened on Wednesday after
Federal Reserve minutes expressed confidence in the durability
of the U.S. economic recovery.
Federal Reserve officials raised their growth estimate for
2010, helping to offset Tuesday's data showing the U.S. grew at
a slower-than-expected pace in the third quarter. But they did
not see employment picking up soon, []
"Good macro news will always serve as a justification for a
rise in the markets," said Giuseppe-Guido Amato, strategist at
German brokerage Lang & Schwarz.
MSCI's all-country world equities index <.MIWD00000PUS> was
up 0.5 percent, while European shares <> rose 0.6 percent,
with oil and mining stocks the main gainers.
"At the moment, it's about owning commodities -- above all,
precious metals, but also oils," Amato said.
Gold prices <XAU=> struck a record high for a second time
this week, rising as high as $1,179.80 an ounce, lifted by a
newspaper report that India was "open to buying" more gold from
the International Monetary Fund and by broad dollar weakness.
U.S. crude oil <CLc1> prices rose 0.4 percent, rebounding
above $76 per barrel to reverse some of the previous day's 2
percent fall following disappointing U.S. growth data and
figures showing a big build in crude inventories.
DOLLAR FALLS
The dollar <.DXY> fell 0.3 percent against a basket of major
currencies, with selling encouraged as the U.S. Federal
Reserve's minutes described the U.S. currency's recent falls as
"orderly".
"When the Fed says the dollar's decline has been 'orderly'
... they're implicitly saying this is not something they will do
anything about," said Johan Javeus, chief currency strategist at
SEB in Stockholm.
The euro rose 0.3 percent against the dollar, taking it
above $1.50 <EUR=>, while the dollar hit its lowest in 10 months
against the yen <JPY=>.
Euro zone government bonds <FGBLc1> edged lower, pulling
away from seven-week highs as equities rose.
Losses were limited, however, after strong demand at a sale
of U.S. five-year notes the previous session.
Earlier, Japan's Nikkei <> rose 0.4 percent in a choppy
session that saw it dip in and out of negative territory.
Emerging stocks <.MSCIEF> rose 0.4 percent.
(Additional reporting by Christoph Steitz in Frankfurt and
Naomi Tajitsu in London, editing by Mike Peacock)
((jessica.mortimer@thomsonreuters.com; Tel: +44207 542 7817,
Reuters Messaging: jessica.mortimer.reuters.com@reuters.net)
