* MSCI world shares at new 11-month peak; dollar at 1-yr low
* Oil, metals rally on growth optimism; gold at 18-mth high
* U.S. stock futures signal strong Wall Street opening
(Updates, adds quote, U.S. futures)
By Sujata Rao
LONDON, Sept 16 (Reuters) - Brightening signs of a global
economic recovery pushed world equities to new 11-month peaks on
Wednesday, with more and more investors joining the rush to sell
low-yield dollars in favour of growth-oriented stocks and
commodities.
Data this week showing a jump in U.S. retail sales has been
interpreted as another sign the world's biggest economy is
indeed on the road to recovery -- signals confirmed by Federal
Reserve Chairman Ben Bernanke who said on Tuesday the worst U.S.
recession since the 1930s was probably over.
The optimism saw fresh cash flood to stock markets worldwide
and boosted oil to around $71 a barrel while gold hit 18-month
highs. But as investors turned to riskier assets the dollar
fell to a one-year low against a basket of currencies <.DXY>.
U.S. stock futures were signalling a strong open on Wall
Street following a one percent jump on the MSCI World index
<.MIWD00000PUS> to the highest levels since early October 2008.
World stocks are up for nine out of the past 10 sessions.
"Another day in this brilliant bull market. The news around
the world has been pretty good again in the past 24 hours...with
comments from (Bank of England Governor Mervyn) King and
Bernanke that the recession had finished," said Jim Wood Smith,
head of research at Williams de Broe in London.
Emerging stocks <.MSCIEF> surged almost 2 percent to new
one-year highs, trading at levels last touched before the
collapse of investment bank Lehman Brothers.
Futures for the S&P 500 <SPc2> were up 0.4 percent while Dow
Jones <DJc2> and Nasdaq 100 <NDc2> futures rose 0.56 percent and
0.35 percent respectively, looking set to build on gains chalked
up in Europe and Asia.
Asia set the pace, sweeping to new 2009 highs, with
exporters like South Korea and Australia up 1.8 percent and 2.4
percent respectively <> <>.
The FTSEurofirst 300 <> index of top European shares rose
1.2 percent to the highest since October 2008 thanks to stronger
banking and commodity stocks.
"When you have comments coming out from Bernanke about a
technical recession ending, that's increasing the pressure on
the bears, there's a bit of a bear squeeze going on," said Mark
Robinson, head of equity research at Unicredit in London.
"There is also a stronger fundamental element -- the G10 is
pulling out of the slump and Asia is clearly in a V-shape
(recovery). That's driving risk trade and commodities -- in the
last week and a half, and particularly in the last 24 hours, we
have seen a commodity stocks trade," Robinson added.
Japan's benchmark Nikkei <> added a more modest 0.5
percent, restrained in part by uncertainty over the policies of
new Prime Minister Yukio Hatoyama. The Bank of Japan began a
two-day meeting but no policy change is anticipated.
Investors even managed to overlook a 1 percent fall in
volatile Shanghai <>, attributing it to profit-taking.
STOCK GAINS, DOLLAR LOSS
Expectations are growing of a sizeable third quarter rebound
in U.S. economic growth as business rebuild inventories after
the 2.7 percent jump in U.S. August retail sales -- the fastest
growth in 3-1/2 years.
That augurs well for the currencies of exporting nations,
especially big commodity producers like Australia and South
Africa, probably at the expense of the dollar which slumped to a
one-year low around 76.187 against a basket of currencies.
The euro powered to new 2009 highs around $1.4690.
The dollar, whose safe-haven status has been eroded as the
economic outlook improves, has shed 2.5 percent to the currency
basket this month and almost 5 percent since early July.
"The general dollar-selling trend remains in place," said
Lauren Rosborough, senior currency analyst at Westpac in London.
The yen gained to a near seven-month high versus the dollar
<JPY=> after Japan's incoming finance minister said a strong yen
had advantages for the nation's economy [].
Silver and platinum prices rose in gold's wake while growth
optimism boosted copper and other base metals across the board.
(Additional reporting by Carolyn Cohn and Joanne Frearson in
London; Editing by Jason Neely)
