* Dow, S&P, Nasdaq reach record intraday highs
* Euro zone PMIs at nearly 6 years offset HSBC profit woes
* Dollar climbs on revived bets on U.S. rate hike in March
* Oil futures jump on OPEC stance on output cuts
(Update market action, change dateline, previous LONDON)
By Richard Leong
NEW YORK, Feb 21 Stock prices across the world
climbed to record highs on Tuesday on news euro zone business
activity accelerated to its swiftest pace in six years, while
the dollar gained on the view the Federal Reserve might raise
interest rates in March.
The revived possibility of a U.S. rate hike next month,
together with demand for risky assets, propelled bond yields
higher but weakened gold prices.
Oil futures rose more than 1 percent after OPEC said it was
sticking to its deal to reduce output.
The rally in equity markets around the globe, led by Wall
Street, has been stoked by hopes of tax cuts, infrastructure
spending and looser regulations from U.S. President Donald Trump
and a Republican-controlled Congress.
Details on U.S. fiscal stimuli remained sketchy, but
investors seemed patient for progress on these possible programs
as they have been assuaged by upbeat company results.
"It does seem like a rally feeding on itself. People are
reluctant to sell into this rally," said John Canavan, market
strategist at Stone & McCarthy Research Associates in Princeton,
MSCI's world stock index which tracks shares
in 45 nations, rose 1.32 points or 0.3 percent, to 445.78 after
touching an all-time peak at 445.82.
On Wall Street, the Dow Jones Industrial Average rose
113.02 points, or 0.55 percent, to 20,737.07, the S&P 500
gained 13.55 points, or 0.58 percent, to 2,364.71 and the Nasdaq
Composite added 25.06 points, or 0.43 percent, to
The three U.S. stock indexes hit record intraday highs, led
by stronger-than-forecast results from retailers Wal-Mart
, Macy's and Home Depot.
Europe's benchmark index of 300 leading shares
touched its highest since Dec. 2015, last up 0.7 percent at
1,473.28 points. Purchasing manager index (PMI) reports showed
the euro zone economy expanding much faster and more smoothly
The FTSEurofirst 300 index reversed an earlier fall,
precipitated by Europe's biggest bank HSBC's surprise
62 percent drop in annual profits.
Stronger appetite for equities and chances of another U.S.
rate increase in the coming months pushed up the dollar index
by 0.5 percent at 101.46.
Philadelphia Fed President Patrick Harker told Market News
International on Monday he would likely support a quarter point
rate increase at the central bank's March 14-15 meeting.
U.S. 10-year Treasury yield was up 1 basis point
at 2.433 percent, while German 10-year Bund yield
was up nearly 2 basis points at 0.317 percent.
In the oil market, Brent crude was last up $0.52, or
up 0.93 percent, at $56.7 a barrel. U.S. crude was last
up $0.73, or up 1.37 percent, at $54.13 per barrel.
Spot gold prices fell $3.94 or 0.32 percent, to
$1,234.06 an ounce.
(Additional reporting by Jamie McGeever in London; Editing by
Gareth Jones and Nick Zieminski)