(Corrects day of week in first paragraph to Tuesday)
* Stocks rally as Yellen pledges to stay course of Bernanke
* Dollar gains, oil prices steady on Yellen's congressional
* Gold rises to three-month high, U.S. government debt sells
By Herbert Lash
NEW YORK, Feb 11 The dollar and global equity
markets rose on Tuesday after new Federal Reserve Chair Janet
Yellen said she expects the U.S. central bank to continue
trimming its bond purchases, a sign the U.S. economy is on track
for further growth.
The U.S. currency rebounded against the euro and gained
against the yen after her written testimony for her appearance
before the House Financial Services Committee was released.
Yellen said recent volatility in global financial markets
did "not pose a substantial risk to the U.S. economic outlook"
and reiterated that the Fed was on track to keep reducing its
Equity markets, from emerging markets to Europe and Wall
Street, advanced as Yellen emphasized continuity in the Fed's
policy strategy, saying she strongly supports the approach of
her predecessor, Ben Bernanke.
"The last thing she wants to do at this point is complicate
things or muddy a well established message. 'Do no harm' is her
motto unless data changes more than we have seen so far," said
Brad McMillan, chief investment officer at Commonwealth
Financial in Waltham, Massachusetts.
MSCI's all-country world index, which
measures stock performance in 45 countries, rose 0.67 percent,
and its emerging markets index gained 0.93 percent.
In Europe, the FTSEurofirst 300 index of leading
regional shares, rose 1 percent.
On Wall Street, the Dow Jones industrial average rose
82.43 points, or 0.52 percent, to 15,884.22. The S&P 500
gained 7.83 points, or 0.44 percent, to 1,807.67 and the Nasdaq
Composite added 19.173 points, or 0.46 percent, to
"'Stay the course' is in my opinion the message the street
wanted to hear," said Phil Orlando, chief equity strategist at
Federated Investors in New York. "The Fed believes these weather
issues, these (emerging market) issues are transitory and we are
in a sustainable growth path for U.S. GDP."
U.S. Treasuries slid after Yellen said she strongly
supported the Fed's monetary policy strategy, suggesting its
current reduction in bond purchases was on track. Yellen's
remarks dispelled fears the economy was worse than expected.
The price of benchmark 10-year Treasury notes
fell 11/32 to yield 2.7185 percent.
Gold hit a three-month high and oil prices rose, with Brent
crude edging above $109 a barrel.
Brent crude was up 38 cents at $109.01 a barrel.
U.S. crude traded flat at $100.06.
Gold futures for April delivery rose 1.1 percent to
$1,289 an ounce.
(Reporting by Herbert Lash; Additional reporting by Francesco
Canepa in London; Editing by James Dalgleish)