* Chinese factory output surges to 19-month high
* Fed governors reinforce bets on low U.S. interest rates
* Dollar rebounds after falling to 15-month lows
* Gold, oil prices up; U.S. bond market closed for holiday
(Updates with U.S. markets, changes byline, dateline, previous
LONDON)
By Walter Brandimarte
NEW YORK, Nov 11 (Reuters) - Global stocks and commodity
prices rose on Wednesday after news of a jump in Chinese
factory output and dovish comments by U.S. Federal Reserve
officials encouraged investors to take on risk.
U.S. crude oil prices rose while gold tested new highs near
$1,120 per ounce as the U.S. dollar initially slid to 15-month
lows. The greenback erased its losses later, however, after
failing to break below key technical levels.
U.S. bond markets did not operate in observance of Veterans
Day.
A string of speeches on Tuesday by officials of the Fed --
the U.S. central bank -- had reinforced the view that U.S.
interest rates will remain near zero for the foreseeable
future, increasing the appeal of higher-yielding assets. For
more see [].
Optimism about a global economic recovery grew after China
said industrial production jumped 16.1 percent in the year to
October, the fastest pace since March 2008. []
"In addition to the economic data showing that things are
getting better you also have seemingly all the policy makers in
the world on a coordinated basis trying to keep this recovery
going," said Eric Kuby, chief investment officer at North Star
Investment Management Corp in Chicago.
MSCI's all-country world stock index <.MIWD00000PUS> rose
nearly 0.5 percent in early afternoon trading.
The Dow Jones industrial average <> gained 42.25
points, or 0.41 percent, at 10,289.22, while The Standard &
Poor's 500 Index <.SPX> rose 5.55 points, or 0.51 percent, at
1,098.56. The Nasdaq Composite Index <> was up 13.69
points, or 0.64 percent, at 2,164.77.
The FTSEurofirst 300 <> index of top European shares
rose 0.4 percent to its highest close since Oct. 22, supported
by bank shares.
Emerging market stocks were 0.9 percent higher, according
to a benchmark MSCI index <.MSCIEF>.
Commodity prices also rose, with U.S. crude oil prices
<CLc1> up 0.37 percent at $79.34 per barrel. Spot gold prices
<XAU=> gained 0.88 percent to $1,114.80 an ounce, after hitting
a high of $1,117.95.
"Today's move has been largely a dollar story -- you've got
euro/dollar testing fresh lows, the same with the dollar
index," said Daniel Major, an analyst with RBS Global Banking &
Markets in London.
The U.S. dollar erased its early losses in a technical
rebound, after selling pressure failed to push it through key
levels. In early afternoon, the greenback edged 0.16 percent
higher against a basket of major currencies, according to the
U.S. Dollar Index <.DXY>.
Against the Japanese yen, the dollar <JPY=> was down 0.01
percent at 89.83. But the euro <EUR=> dipped 0.04 percent
against the dollar to $1.4976.
"It was a technical failure to break through the old lows
on the dollar," said Joseph Trevisani, senior market analyst at
FX Solutions in Saddle River, New Jersey.
"It's still looking lower but it is going to take a
stronger push for the dollar to get through on the downside."
(Additional reporting by Edward Krudy and Nick Olivari in New
York and Joanne Frearson, Natsuko Waki and Jan Harvey in
London; Editing by James Dalgleish)
