GLOBAL MARKETS-World stocks set fresh record high on strong China, U.S. data

* MSCI All-Country World Index up 0.2%
* FTSE 100 leads European stock markets higher, up 0.5%
* China Q1 GDP grows record 18.3%
* Global asset performance http://tmsnrt.rs/2yaDPgn
* World FX rates http://tmsnrt.rs/2egbfVh

By Simon Jessop
LONDON, April 16 (Reuters) - Global stocks hit a record high
on Friday and oil climbed after strong U.S. and Chinese economic
data bolstered expectations of a solid global recovery from the
coronavirus-induced slump.
Government stimulus, a string of strong corporate earnings
releases and signs of economic recovery in countries ahead in
the COVID-19 vaccination race have all helped push stock markets
onto new heights in recent days.
"As the economic re-opening accelerates in the coming
months, we believe the bull market remains on a solid footing,"
said Mark Haefele, chief investment officer, UBS Global Wealth
Management.
MSCI's broadest gauge of world stocks .MIWD00000PUS edged
higher in early European trade, up 0.2% to a record high.
Europe's top indexes all opened higher, led by Britain's FTSE
100 .FTSE , up 0.5% and passing 7,000 points for the first time
since February 2020.
"As the global recovery becomes more entrenched, fuelled by
continued fiscal stimulus and ultra-loose monetary policy, we
think this should translate into continued positive UK equity
market performance," said Nick Peters, multi asset portfolio
manager, Fidelity International.
U.S. stock futures pointed to a mixed open on Wall Street,
with those for the S&P 500 ESc1 up 0.1% and Nasdaq futures
NQc1 down 0.1%
Overnight, Asian markets had tracked a path similar to
Europe's. MSCI's broadest index of Asia-Pacific shares outside
Japan .MIAPJ0000PUS was last up 0.5%, with Shanghai shares
.SSEC adding 0.8% and Japan's Nikkei .N225 up 0.1%.
Driving the move was Chinese data showing record 18.3%
growth in the first quarter, though the reading slightly
undershot expectations. Retail sales bounced strongly last
month. "We remain focused on a China-led rebound steadily helping
the Asia-Pacific region," said Sebastien Galy, senior macro
strategist at Nordea Asset Management.
"As the U.S. economy and then European economies open up, it
should further help Asian exports. This should support Emerging
Market and APAC equities as well as China equities and fixed
income."
Despite the punchy GDP number, gains were tempered by the
view that Beijing will act to rein in the brisk expansion later
in the year to stop the economy overheating.
The strong Chinese data had followed similarly upbeat
numbers out of the United States overnight. Retail sales
rebounded 9.8% in March, pushing the level of sales 17.1% above
its pre-pandemic level to a record high. The brightening economic prospects were underscored by other
data, including first-time claims for unemployment benefits,
which tumbled last week to the lowest level since March 2020.
All of which initially helped oil prices push on, hitting
one-month highs thanks to the economic data and higher demand
forecasts from the International Energy Agency (IEA) and OPEC,
before pulling back.
Brent futures LCOc1 were last flat at $66.94 per barrel.
U.S. crude CLc1 was down 0.1% at $63.4 per barrel, both on
course for their first substantial weekly gains in six.
Despite the strong data, U.S. bond yields dropped, in part
driven by buying from Japan, which began a new financial year
this month. The 10-year U.S. Treasuries yield was last at 1.573%
US10YT=TWEB .
"We retain a modest short position in U.S. rates and would
be inclined to add to this should yields drop towards 1.5% on
the 10-year part of the yield curve," said Mark Dowding, chief
investment officer at BlueBay Asset Management.
In the currency market, lower U.S. yields were a drag on the
dollar overnight, and the dollar index ebbed in late morning
trade in Europe to be down 0.2% =USD .
The euro was up 0.2% at $1.1989 EUR= , having hit a
six-week high of $1.19935 overnight. The pound was down flat at
1.3791.
Gold bounced off session lows to trade up 0.8% to pass its
previous seven-week high at $1,777.9 per ounce XAU=

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Editing by Kim Coghill, Larry King)