GLOBAL MARKETS-Global shares hit new peak, oil up on Middle East tensions

(Recasts, adds European market data, updates levels throughout)
* MSCI World index up 0.2% to fresh record high
* Follows similarly strong moves in Asia overnight
* Oil prices at highest since January 2020
* Risk appetite higher on virus vaccine rollout, U.S.
stimulus

By Simon Jessop and Swati Pandey
LONDON/SYDNEY, Feb 15 (Reuters) - Global shares rose for the
11th day in a row to hit a fresh peak on optimism about the
rollout of COVID-19 vaccines and new fiscal aid from Washington,
while tensions in the Middle East drove oil to a 13-month high.
As more people are vaccinated across key markets such as the
United States, and with U.S. President Joe Biden looking to pump
an extra $1.9 trillion in stimulus into the economy, the
so-called "reflation trade" has gathered steam in recent days.
On Friday, The Cboe Volatility Index .VIX , known as Wall
Street's "fear gauge", ended at its lowest level for nearly a
year, helping drive a 0.2% gain for MSCI's broadest measure of
world stocks .MIWD00000PUS on Monday. Taking its cue from a stronger, albeit holiday-thinned Asian
session, Europe's major indexes were a sea of green in early
deals, led by a near-1% gain for Britain's FTSE 100 .FTSE .
With China and Hong Kong markets closed for the Lunar New
Year holiday, Japan's Nikkei .N225 led the way, climbing 1.9%
to reclaim the 30,000-point level for the first time in more
than three decades. E-mini futures for the S&P 500 ESc1 were also higher, up
0.3%, although U.S. stock markets will be closed on Monday for
the Presidents Day holiday.
Later in the week, all eyes will be on the release of
minutes from the U.S. Federal Reserve's January meeting, where
policymakers decided to leave rates unchanged, for hints to the
likely direction of monetary policy.
Those concerned about the impact of market exuberance on the
outlook for inflation will also have fresh data to parse, with
Britain, Canada and Japan all due to report. Friday will also
see major economies, including the United States, release
preliminary February purchasing managers' indexes (PMI).
"In our view, as long as the rise (in inflation) is gradual,
equity markets can continue to do well. However, unruly moves
would certainly hurt investor sentiment," said Esty Dwek, head
of global market strategy, Natixis Investment Managers
Solutions.
"Credit spreads have tightened sharply already, but they
still have room to absorb some higher yields, making us more
comfortable with credit risk than interest rate risk," Dwek
added.
Oil joined equity markets in pushing higher, reaching its
highest level since January 2020 on hopes U.S. stimulus will
boost the economy and fuel demand and after a Saudi-led
coalition fighting in Yemen said it intercepted an
explosive-laden drone fired by the Iran-aligned Houthi group.
O/R
Brent crude LCOc1 rose 1.6% to $63.41 a barrel. U.S. crude
oil CLc1 gained 2.1% to $60.74.
With risk assets in favour, safe havens dipped, with gold
down 0.2% to $1,819 an ounce.
The dollar also remained under the cosh, hovering near
two-week lows as traders took a more cautious view of the pace
of the U.S. economy's rebound. Against a basket of currencies
=USD it was last down around 0.2%.
Bitcoin BTC=BTSP , meanwhile, recovered some of its
overnight weakness to trade down 2.3% at $47,539.49, below a
record high of $49,714.66.

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(Editing by Jacqueline Wong and Alex Richardson)