* 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 close)
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.
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 -- 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
[].
"Investors were waiting to see when all the stimulus would
be withdrawn and what would happen then. Now, they think
stimulus won't be withdrawn for a lot longer than they used
to," said Michael Pento, senior market strategist at
Boston-based Delta Global Advisors.
Optimism about a global economic recovery also grew after
China said industrial production jumped 16.1 percent in the
year to October, the fastest pace since March 2008.
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"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 0.51 percent.
The Dow Jones industrial average <> ended up 44.29
points, or 0.43 percent, at 10,291.26, while the Standard &
Poor's 500 Index <.SPX> rose 5.50 points, or 0.50 percent, to
1,098.51. The Nasdaq Composite Index <> gained 15.82
points, or 0.74 percent, at 2,166.90.
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 0.91 percent higher, according
to a benchmark MSCI index <.MSCIEF>.
Commodity prices also rose, with U.S. crude oil prices
<CLc1> ending up 0.29 percent at $79.28 per barrel. Spot gold
prices <XAU=> gained 1.14 percent to $1,117.70 an ounce, after
hitting a high of $1,118.35 earlier in the session.
Gold prices are poised to rise further, analysts said, on
the back of ongoing dollar weakness and potential inflation
issues down the road.
"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.
But the U.S. dollar erased its initial losses in a
technical rebound, after selling pressure failed to push it
through key levels. The greenback edged 0.09 percent higher
against a basket of major currencies, according to the U.S.
Dollar Index <.DXY>.
Against the Japanese yen, the dollar <JPY=> inched 0.04
percent lower at 89.80. The euro <EUR=> was also practically
flat, dipping 0.01 percent to $1.4981.
"We're seeing a minor pullback after stocks didn't sustain
new highs," said Brian Dolan, chief strategist at Forex.com in
Bedminster, New Jersey.
"But oil and gold are still up and the lack of any movement
from the Fed will eliminate any interest rate support for the
dollar."
(Additional reporting by Caroline Valetkevitch and Steven C.
Johnson in New York and Joanne Frearson, Natsuko Waki and Jan
Harvey in London; Editing by Diane Craft)
