GLOBAL MARKETS-Dollar gains, stocks scale fresh highs on data, trade deal

(Adds U.S. market open, byline, dateline; previous LONDON)
* MSCI's world index, shares on Wall Street hit new highs
* Canadian shares also hit new high
* Oil, dollar gain

By Herbert Lash
NEW YORK, Jan 16 (Reuters) - The dollar rose while key world
and stock indexes on Wall Street scaled new records on Thursday
as the U.S.-China trade deal, strong corporate earnings and
encouraging U.S. economic data lifted equity markets.
Oil rose as the long-awaited Phase 1 trade deal brought some
relief to markets, while gold prices slid below the
psychological level of $1,500 an ounce as the upbeat data
signaled a healthy U.S. economy.
U.S. retail sales increased for a third straight month in
December and the number of Americans filing claims for
unemployment benefits dropped for a fifth straight week last
week, indicating the labor market remained strong. Other data showed a gauge of manufacturing activity in the
U.S. Mid-Atlantic region rebounded in January to its highest in
eight months, leading the Federal Reserve Bank of Philadelphia
to call the factory outlook the brightest in more than 18
months. Upbeat earnings from Morgan Stanley and a tech rally on Wall
Street added to optimism from a trade deal investors hope will
ease an 18-month U.S.-Sino dispute that has roiled markets and
crimped global growth.
"We believe the agreement underpins a positive outlook for
risk assets, especially emerging market stocks," said Mark
Haefele, chief investment officer at UBS Global Wealth
Management.
"But it is also important for investors to understand the
limitations of the deal. So we see the deal as representing a
partial calming rather than an end to trade tensions."
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.33% to an all-time high, while emerging market stocks
rose 0.21%.
U.S. stocks also climbed to new highs, as did Canadian
shares on Bay Street in Toronto.
The Dow Jones Industrial Average .DJI rose 165.9 points,
or 0.57%, to 29,196.12. The S&P 500 .SPX gained 16.61 points,
or 0.50%, to 3,305.9 and the Nasdaq Composite .IXIC added
52.71 points, or 0.57%, to 9,311.41.
Technology stocks .SPLRCT provided the biggest boost on
Wall Street, with Apple Inc AAPL.O up more than 0.6% and
chipmakers gaining after a strong forecast from the world's top
contract chipmaker TSMC 2330.TW TSM.N signaled a recovery in
the sector.
The Philadelphia Semiconductor index .SOX climbed 1.0%.
European shares edged higher but Asia saw China's biggest
stocks take a slight dip overnight. .SSEC
The pan-European STOXX 600 index .STOXX rose 0.17%.
The dollar index erased earlier losses to rise on the data.
"The data flurry was positive, particularly the Philly Fed
number," said Greg Anderson, global head of foreign exchange
strategy at BMO Capital Markets in New York. It "reduces the
probability for a recession, which was low already."
The dollar index .DXY rose 0.1%, with the euro EUR= down
0.16% at $1.1131. The Japanese yen JPY= weakened 0.23% versus
the greenback at 110.17 per dollar.
Crude oil gains of more than 1% were capped after the
International Energy Agency said it expected oil production to
outpace demand.
Brent LCOc1 rose 70 cents to $64.70 a barrel and West
Texas Intermediate CLc1 advanced 87 cents to $58.68 a barrel.
China committed to buy over $50 billion more of U.S. oil,
liquefied natural gas and other energy products over two years,
according to the trade deal. U.S. Treasury yields rose slightly on the strong economic
data and bank earnings.
The benchmark 10-year US10YT=RR yield was up 1.2 basis
points in morning trading at 1.8004%.
Central banks were active, with both Turkey and South Africa
cutting their interest rates again after policy meetings.
The European Central Bank published a largely upbeat set of
meeting minutes ahead of a speech from its chief, Christine
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