* 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 LONDON)
By Caroline Valetkevitch
NEW YORK, Sept 26 (Reuters) - 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, Janus said.
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 flows.
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