* Wall Street gets lift from U.S. growth data, healthcare
* Oil prices drop 4 pct on jitters about OPEC output accord
* Hopes for Italian banks bolster European shares
* Dollar index falls, in step with U.S. bond yields
(Updates with Wall Street close)
By Richard Leong
NEW YORK, Nov 29 Stock prices around the world
rose on Tuesday following upbeat U.S. growth data and strength
in U.S. healthcare shares, while oil prices tumbled to the
weakest level in over a week on doubts OPEC could reach an
accord to reduce output.
The dollar fell against a basket of currencies on
profit-taking. The dollar index had hit a near 14-year peak last
week on expectations a Trump administration would result in tax
cuts and a surge in federal spending to bolster the U.S.
"Optimism surrounding potential fiscal stimulus and some
targeted deregulation next year have lifted U.S. equity prices
in recent weeks," said Jim Baird, chief investment officer at
Plante Moran Financial Advisors.
"Couple that with an increasingly enthusiastic consumer
supported by stronger wage gains, and the economy appears
well-positioned to remain on a growth path heading into 2017."
Concerns about rising government borrowing to finance
fiscal stimuli, together with upbeat U.S. economic data, spurred
early selling in U.S. Treasuries and other core government bonds
before month-end related buying emerged, pushing their yields
Gold prices fell on growing expectations of stronger global
growth led by the United States and the Federal Reserve raising
interest rates in response.
The Dow Jones industrial average ended up 23.7
points, or 0.12 percent, to 19,121.6, the S&P 500
finished 2.94 points, or 0.13 percent, higher at 2,204.66 and
the Nasdaq Composite closed up 11.11 points, or 0.21
percent, to 5,379.92.
Nasdaq earlier hit a record intraday high at 5,403.86.
The outlook for U.S. stocks improved after data showed the
U.S. economy grew 3.2 percent in the third quarter, faster than
initially thought, due to strong consumer spending and a surge
in soybean exports.
UnitedHealth's 3.6 percent rise to a record high
after the largest U.S. health insurer's upbeat forecast boosted
the healthcare sector.
European equities ended higher, with Italian bank stocks
gaining 4 percent after Monte dei Paschi's rescue
plan got off to an encouraging start. Italian insurer Generali's
board approved a conversion of 400 million euros in Monte's
subordinated bonds into shares, according to Italian press
Europe's broad FTSEurofirst 300 index finished up
0.26 percent at 1,343.68.
The MSCI world equity index, which tracks
shares in 45 nations, rose 0.66 point or 0.2 percent, to 414.30.
In addition to its bank sector, Italy was also in focus
ahead of a constitutional referendum on Sunday.
Italian 10-year government yields fell below 2
percent after Reuters reported that the European Central Bank is
ready to buy more Italian bonds if there is turmoil after the
constitutional referendum on Sunday.
The political risk kept the euro restrained despite the
pullback in the dollar. The single currency was last up
0.3 percent at $1.0648.
The dollar index fell 0.4 percent on profit-taking,
paring its month-to-date gain to 2.6 percent.
The greenback's decline was compounded by lower U.S. yields,
with 10-year Treasury yield falling 2 basis points
to 2.30 percent.
Meanwhile, oil prices shed about 4 percent as OPEC members
seemed to struggle with agreeing on a production cut to address
a global supply overhang.
Brent crude settled down $1.86, or 3.86 percent, at
$46.38 a barrel. U.S. crude settled down $1.85 or 3.93
percent at $45.23 per barrel.
Spot gold prices fell $5.53 or 0.46 percent, to
$1,187.85 an ounce.
(Additional reporting by Tanya Agrawal, Anya George Tharakan in
Bengaluru, Abhinav Ramnarayan in London, Wayne Cole in Sydney;
Editing by Nick Zieminski and Dan Grebler)