GLOBAL MARKETS-World stocks at new peaks on strong China, U.S. data

(Adds close of U.S. markets)
* MSCI's all-country world index up 0.4%
* MSCI, Dow, S&P 500, STOXX 600 hit records
* China Q1 GDP grows record 18.3%
* Global asset performance http://tmsnrt.rs/2yaDPgn
* World FX rates http://tmsnrt.rs/2egbfVh

By Herbert Lash and Simon Jessop
NEW YORK/LONDON, April 16 (Reuters) - Gold prices hit a
seven-week high and global stocks scaled new records on Friday
after strong U.S. and Chinese economic data bolstered
expectations of a solid global recovery from the coronavirus
pandemic.
Government stimulus, strong corporate earnings from U.S.
banks and in Europe, along with signs of economic recovery in
countries leading the COVID-19 vaccination race have all helped
push stock market indexes to new heights this week.
MSCI's broadest gauge of world stocks .MIWD00000PUS rose
0.42% to an all-time peak, lifted by surging European shares and
lesser gains on Wall Street where both the Dow Industrial and
benchmark S&P 500 posted their fourth week of successive gains.
As long as the strong economic rebound, tremendous fiscal
and monetary support and progress on vaccine distribution remain
in place, markets can grind higher, said Michael Arone, chief
investment strategist at State Street Global Advisors in Boston.
"Investors and market participants continue to underestimate
both the economic and earnings recovery," he said. "The earnings
numbers have continued to exceed expectations by a very wide
margin."
First-quarter earnings are expected to rise 30.9% from a
year ago, the highest since late 2010 when the economy was
pulling out of financial crisis, according to Refinitiv data.
U.S. homebuilding surged to nearly a 15-year high in March,
the Commerce Department said on Friday, adding to robust retail
sales data the prior day, suggesting the economy was roaring.
In Europe, the pan-regional STOXX 600 index .STOXX closed
up 0.9% at a new peak, while Germany's DAX .GDAXI gained 1.3%
to hit an all-time high and the UK's FTSE 100 .FTSE rose 0.5%
to close at more than one-year highs.
On Wall Street, the Dow Jones Industrial Average .DJI rose
0.48% and the S&P 500 .SPX gained 0.36%, both setting new
highs. The Nasdaq Composite .IXIC added 0.1% as declines in
the information technology sector weighed.
German car and truck maker Daimler DAIGn.DE rose 2.7% as
higher vehicle prices and strong demand in China helped it post
a better-than-expected surge in quarterly operating profit.
"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.
Chinese data showing record 18.3% growth in the first
quarter drove Asian shares higher, though the reading slightly
undershot expectations. Retail sales bounced strongly last
month. Asian markets rallied overnight on the news. MSCI's broadest
index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose
0.4% and Shanghai shares .SSEC added 0.8%. Japan's Nikkei
.N225 edged up 0.1%.
"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," said Sebastien Galy, senior macro strategist at Nordea
Asset Management.
Gold prices posted their biggest weekly percentage gain,
about 4.5%, since early November as the slide this week in
Treasury yields and a weaker dollar brightened the metal's
appeal.
U.S. gold futures GCv1 settled 0.8% higher at $1,780.20 an
ounce.
The dollar slid to a 4-week low against a basket of
currencies after the sharp drop in Treasury yields on Thursday,
as investors increasingly accepted the Federal Reserve's vow to
keep an accommodative policy stance for longer than expected.
The dollar index =USD fell 0.14%, with the euro EUR= up
0.13% to $1.198. The Japanese yen weakened 0.02% versus the
greenback at 108.78 per dollar.
The yield on U.S. 10-year Treasuries US10YT=RR rose 6.6
basis points in a late surge to 1.594%, rebounding from
multi-week lows hit the prior session.
Oil fell slightly after a week of gains built on strong U.S.
and Chinese economic data that offset concerns about rising
COVID-19 infections in other major economies.
Brent crude futures LCOc1 settled down 17 cents at $66.77
a barrel and U.S. crude futures CLc1 fell 33 cents to settle
at $63.13 a barrel.

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World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
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