* U.S. stocks higher in early trading
* U.S. Treasuries dip on news of Gross departure from Pimco
* Dlr heads toward 11th straight week of gains
* Allianz shares tumble
(Updates with U.S. market openings; changes dateline; previous
By Caroline Valetkevitch
NEW YORK, Sept 26 World equity markets climbed
on Friday as data showed the U.S. economy grew at its fastest
pace in more than two years in the second quarter, while U.S.
bond prices dipped after news high-profile investor Bill Gross
is leaving Pimco for a rival firm.
News of Gross' departure also drove down shares of German
insurer Allianz, the parent of Newport Beach,
California-based Pimco. Gross, one of the bond market's most
renowned investors, will be joining Janus Capital Group,
Allianz shares tumbled about 6 percent, wiping about 3.75
billion euros ($4.77 billion) from the group's market value.
The U.S. data also drove up the dollar, which was heading
toward an 11th straight week of gains against a basket of
currencies. That would extend its longest winning streak since
its 1971 free float under President Nixon.
The Dow Jones industrial average was up 77.94 points,
or 0.46 percent, at 17,023.74. The Standard & Poor's 500 Index
was up 6.87 points, or 0.35 percent, at 1,972.86. The
Nasdaq Composite Index was up 19.20 points, or 0.43
percent, at 4,485.94.
U.S. Commerce Department reported the U.S. economy grew at
its strongest rate in 2-1/2 years during April, May and June.
In the United States "in recent months, the 'Goldilocks'
scenario of modest growth and tame inflation (has) largely been
in play and the economy has not been too slow or too fast, and
in recent days that characterization is being challenged a bit,"
said Terry Sandven, senior equity strategist at U.S. Bank Wealth
Management in Minneapolis.
MSCI's global share index was flat, while
European shares was up 0.4 percent. The MSCI emerging
stocks index was down 0.2 percent.
U.S. 10-year Treasury notes were last down 5/32
in price to yield 2.53 percent, from a yield of 2.51 percent
late Thursday. The yield hit a session high of 2.55 percent.
In the foreign exchange market, the dollar has been driven
higher by the divergent monetary policy outlooks between the U.S
Federal Reserve's contemplating a rate hike and the ECB and Bank
of Japan mulling further stimulus.
The dollar index got extra lift from upwardly revised
U.S. gross domestic product data. It was up 0.4 percent and hit
a four-year peak of 85.521 even as strategists and traders
predicted a pullback in the dollar rally.
The yield difference between 10-year U.S. Treasuries
and German Bunds reached its widest in
nearly 15 years on Thursday, keeping pressure on the euro.
High bond yields tend to attract more fund inflows as bond
investments account for a big chunk of international capital
In the oil market, U.S. oil prices were up 50 cents
at $93.03 a barrel. Brent crude edged up to just below
$97 but was still headed for its biggest monthly drop since
April 2013 as rising supplies outweighed fears that U.S.-led
strikes against Islamist militants in Syria and Iraq will
disrupt oil production.
(Additional reporting by Chuck Mikolajczak in New York; Emelia
Sithole-Matarise in London; Patrick Graham and Blaise Robinson
in Paris; Editing by Catherine Evans and Dan Grebler)