GLOBAL MARKETS-Stocks rally on rising commodities, weaker dlr

                                
   * Wall St jumps 1 pct, led by commodity-related stocks
                                
 * US crude oil gains over 4 pct on dollar weakness
                                
 * US dollar weakens despite Bernanke's FX comments
                                
 * Gold hits record high above $1,140/oz
                                
 By Walter Brandimarte
                                
 NEW YORK, Nov 16 (Reuters) - World stocks rallied on
Monday, boosted by stronger commodity prices and a weak dollar,
even after U.S. Federal Reserve Chairman Ben Bernanke said the
central bank was monitoring the value of the greenback
"closely."
                                
 U.S. crude oil futures jumped 4 percent as the weaker
dollar prompted investors to buy commodities. The greenback
slipped on better-than-expected U.S. retail sales data and
after Asian and U.S. leaders failed to agree over exchange
rates at a summit in Singapore. For details, see [ID:nAPEC]
                                
 The dollar pared its losses later after Bernanke said the
Fed was monitoring the declining value of the dollar closely as
part of its commitment to both jobs growth and price stability.
The Fed chief also repeated that interest rates are likely to
remain low for "an extended period." [ID:nN16514940]
                                
 "Until the world sees actual action, the U.S. dollar will
remain in secular decline. But today's comments may be enough
to halt the current fall for now," said Peter Boockvar, equity
strategist at Miller Tabak + Co in New York.
                                
 "Money will go where its best treated, and monetary and
fiscal policy in the U.S. is not currently treating the U.S.
dollar well, relative to other countries," he added.
                                
 U.S. stocks pared gains right after Bernanke's comments,
but remained near 13-month highs.
                                
 The Dow Jones industrial average <.DJI> gained 156.59
points, or 1.52 percent, to 10,427.06. The Standard & Poor's
500 Index <.SPX> rose 19.33 points, or 1.77 percent, to
1,112.81. The Nasdaq Composite Index <.IXIC> put on 34.41
points, or 1.59 percent, to 2,202.29.
                                
 The MSCI all-country world stock index <.MIWD00000PUS>
climbed 1.8 percent, while an emerging market stocks index
<.MSCIEF> rallied 2.3 percent.
                                
 The pan-European FTSEurofirst 300 index of top shares
<.FTEU3> closed up 1.5 percent at 13-month highs, also boosted
by commodity-related stocks like miners Rio Tinto Plc <RIO.L>
and Xstrata Plc <XTA.L>, which gained 5.5 percent and 7.8
percent, respectively.
                                
 "The market is up quite strong, with mining and commodity
stocks leading the march. The market keeps shrugging off
negative figures, and as long as it does so, it is likely to
move higher," said Manoj Ladwa, senior trader at ETX Capital in
London.
                                
 U.S. crude oil futures <CLc1> soared 4 percent to $79.35
per barrel, also reflecting improved investor optimism about
the U.S. economy following October retail sales data.
                                
 In a report reflecting gradual improvement in consumer
spending, the U.S. Commerce Department said total retail sales
increased a better-than-expected 1.4 percent last month, the
largest advance since August. [ID:nN16371323]
                                
 But the government also revised the September sales data to
a 2.3 percent drop from a previously reported 1.5 percent
decline.
                                
 Bond investors focused on the negative side of the retail
sales report -- a more modest rise excluding auto purchases --
to explain their appetite for safer U.S. Treasuries.
                                
 The benchmark 10-year U.S. Treasury note <US10YT=RR> added
10/32, bringing its yield down to 3.3843 percent. The 30-year
U.S. Treasury bond <US30YT=RR> gained 36/32, with the yield at
4.2912 percent.
                                
 DOLLAR SHRUGS OFF BERNANKE
                                
 The U.S. dollar continued its decline Monday, after drawing
only brief support from Bernanke's comments.
                                
 The greenback fell 0.8 percent against a basket of major
trading-partner currencies <.DXY>.
                                
 Against the Japanese yen, the dollar <JPY=> was down 0.50
percent at 89.26. The euro <EUR=> gained 0.30 percent at
$1.4958.
                                
 Michael Woolfolk, senior currency strategist at BNY Mellon
in New York, said Bernanke indicated that the Fed's mandate is
to help keep the dollar strong.
                                
 "Still," he added, "Bernanke's remarks indicate that the
Fed is unlikely to factor in the dollar's performance regarding
the timing of policy decisions."
                                
 With U.S. interest rates expected to remain near zero for a
prolonged period, appetite for emerging market assets and
commodities should remain strong, analysts said.
                                
 Gold prices hit a fresh high above $1,140 an ounce <XAU=>
on Monday.
                                
 The Reuters/Jefferies CRB Index <.CRB> was up 7.91 points,
or 2.9 percent, at 277.01.
                                
 (Additional reporting by Rodrigo Campos, Nick Olivari and
Ellen Freilich in New York, Joanne Frearson in London; editing
by Jeffrey Benkoe)