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Upbeat US data lift dollar, send world shares to fresh peak

Also, stocks on Wall Street climbed, ahead of Yellen's second day of testimony

Herbert Lash | Reuters  |  New York 

US Sensex
The pan-European FTS Eurofirst 300 index rose 0.27 per cent to close at a preliminary 1,518.69

Upbeat data lifted the and sent world shares to a fourth all-time high in less than a month on Thursday, a day after Chair signalled that a rise in would be less aggressive than had been expected.

gained as evidence of stronger demand in offset reports of higher production by key Opec exporters in a report by the Energy Agency (IEA).

Stocks on climbed, ahead of Yellen's second day of testimony after her remarks on Wednesday suggested a more gradual tightening of than expected, which sparked a rally in

The is healthy enough for the Fed to raise rates and begin winding down its massive bond portfolio, though low inflation may leave the central bank with less leeway, Yellen told a House committee on Wednesday.

Sentiment was boosted after reported upbeat data on exports and imports for June, the latest sign that is finding some traction again.

The data pushed Asian shares up more than 1 percent and lifted MSCI's 47-country gauge of to a fresh record high with a gain of 0.25 per cent.

The pan-European FTSEurofirst 300 index rose 0.27 per cent to close at a preliminary 1,518.69.
The Dow Jones Industrial Average rose 18.24 points, or 0.08 per cent, to 21,550.38. The S&P 500 gained 2.82 points, or 0.12 per cent, to 2,446.07 and the added 2.29 points, or 0.04 per cent, to 6,263.46. Encouraging economic data supported the

The number of Americans filing for benefits fell last week for the first time in a month and producer prices unexpectedly rose in June. The data likely will keep the Fed on track for a third interest rate increase this year.

"We are seeing the do a little bit better this morning, particularly following the producer price index figure," said Sireen Harajli, FX strategist at Mizuho in New York.
US stock market
"Yesterday, Yellen's comments were perceived as more dovish by the market," she said.

Yellen returned to Capitol Hill on Thursday to testify before the Senate Banking Committee and investors are also focused on U.S. consumer price index numbers due out on Friday.

rose after dropping in recent weeks to levels not seen since the end of last year as investors lost faith in a deal between the Organization of the Petroleum Exporting Countries and non-OPEC producers to reduce output.

U.S. shale oil production also has risen sharply.

Brent crude was up 71 cents to $48.45 a barrel. U.S.

light crude was 69 cents higher at $46.18.

U.S. Treasury yields rose after falling for three straight days, tracking gains in German bond yields with solid U.S.

economic data supporting their trend higher.

Benchmark 10-year U.S. Treasury notes fell 9/32 in price to yield 2.3569 percent. The German 10-year Bund was up 2 basis points to 0.533 percent.