By Herbert Lash
NEW YORK (Reuters) - The dollar and global equity markets rebounded on Thursday after three days of losses, spurred by strong U.S. retail sales and declining jobless claims, signaling an economy that can weather slumping oil prices and a likely interest rate hike next year.
U.S. consumer spending advanced at a brisk clip in November as lower gasoline prices gave holiday shopping a boost and offered the latest sign of an economy still gathering momentum.
"We are starting to get some metrics around the energy and we are seeing that one 'X' factor of, 'Will consumers spend this extra money?'" said Sean McCarthy, regional CIO for Wells Fargo Private Bank in Scottsdale, Arizona. "And in the holiday season they are (spending), and more so."
The dollar rose 1.31 percent to 119.35 yen
The U.S. equity benchmark S&P 500 index <.SPX> had shed 2.4 percent over the past three sessions, its worst run in two months, as tumbling oil prices weighed on the energy <.SPNY> sector.
But crude's weakness has helped holiday spending, with retail sales data for November beating expectations. The S&P retail index <.SPXRT> jumped 2.0 percent, lifted by a similar climb by Home Depot
MSCI's all-country world stock index <.MIWD00000PUS> rose 0.44 percent to 416.62, while the FTSEurofirst 300 <.FTEU3> index of top European shares gained 0.12 percent at 1,358.88.
On Wall Street, the Dow Jones industrial average <.DJI> was up 208.45 points, or 1.19 percent, at 17,741.60. The Standard & Poor's 500 Index <.SPX> was up 27.66 points, or 1.37 percent, at 2,053.80. The Nasdaq Composite Index <.IXIC> was up 73.28 points, or 1.56 percent, at 4,757.31.
Brent crude moved higher after dipping below $64 a barrel on signs already ample supplies will be even more plentiful in 2015 following an Organization of the Crude Exporting Countries forecast.
Falling prices were spurred on Wednesday after U.S. crude inventories unexpectedly rose and OPEC's most influential voice, Saudi Arabia's oil minister, shrugged off the need for an output cut.
North Sea Brent crude
Intermediate-dated U.S. Treasuries weakened and the yield curve neared its flattest in six years after the U.S. economic data.
Three-year notes
Benchmark 10-year notes
British 20- and 30-year government bond yields hit record lows as euro zone debt rallied on bets the European Central Bank was likely to resort to outright asset purchases.
(Reporting by Herbert Lash; Editing by Dan Grebler)
