Shares rise on German growth, Greece optimism; oil rises

NEW YORK (Reuters) - Stock markets worldwide rose on Friday on stronger-than-expected German economic growth data and optimism that Greece could reach a deal with its creditors, while oil prices gained on signs that excess supply may ebb.

Germany grew 0.7 percent in the fourth quarter, more than double the expected 0.3 percent rate, pointing to a stronger 2015 for the euro zone's biggest economy.

The growth in Germany boosted the overall euro zone economy, which accelerated by 0.3 percent. Top European shares hit a seven-year high, while Germany's DAX <.GDAXI> index hit a record high. U.S. shares nudged higher, with the benchmark S&P 500 <.SPX> index hitting an intraday record high.

Greek equities <.ATG> rallied nearly 6 percent as shares of Greek banks surged on signs the country could reach a deal with creditors.

A Greek government spokesman said the country will make every effort to reach a deal at Monday's meeting of euro zone finance ministers on how to transition to a new support program.

"The big factor in the market is that hopes are building that we are probably looking at some agreement between the euro group and Greece, possibly as early as Monday," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.

Oil rose above $60 a barrel for the first time this year, supported by signs that deeper industry spending cuts may curb excess supply. Brent crude settled up $2.24 at $61.52 per barrel. U.S. crude settled up $1.57 at $52.78 per barrel.

The rise comes after Brent collapsed to a near six-year low in late January, as fears of a global oil glut rattled the market.

"Naturally, when prices fall that much within that short a time, you're likely to have a severe rebound as well," said Phil Flynn, analyst at the Price Futures Group in Chicago.

The Dow Jones industrial average <.DJI> was last up 32.88 points, or 0.18 percent, at 18,005.26. The S&P 500 <.SPX> was up 4.44 points, or 0.21 percent, at 2,092.92. The Nasdaq Composite <.IXIC> was up 24.80 points, or 0.51 percent, to 4,882.41.

U.S. stocks took in stride data showing the biggest drop in U.S. import prices in six years and weaker-than-expected U.S. consumer sentiment.

In Europe, the FTSEuroFirst index of 300 leading shares <.FTEU3> closed up 0.64 percent, at 1,502.82. MSCI's all-country world equity index <.MIWD00000PUS> was last up 2.58 points or 0.61 percent, at 427.27.

The dollar was up slightly against the euro, but the euro was still on track for its third straight week of gains against the dollar. The euro was last down 0.11 percent against the greenback at $1.1392.

The strong data out of Germany and optimism that Greece could reach a debt deal helped push U.S. Treasury yields higher. Benchmark 10-year Treasury yields were last at 2.02 percent, from 1.99 percent late Thursday.

Spot gold prices were last up $6 or 0.49 percent, at $1,228.20 an ounce.

(Reporting by Sam Forgione; Additional reporting by Lionel Laurent in London and Chuck Mikolajczak and Barani Krishnan in New York; Editing by Leslie Adler and Chizu Nomiyama)