Global shares gain on strong U.S. GDP data, oil steadies

NEW YORK (Reuters) - U.S. and European shares rose on Tuesday, with the Dow industrials topping 18,000 for the first time after an unexpectedly strong report on U.S. economic growth supported risk appetite and eased concerns about falling oil prices.

Both the Dow and the S&P 500 hit intraday record highs after the Commerce Department said the final estimate of U.S. gross domestic product for the third quarter was revised up to a 5 percent annual pace, its quickest in 11 years, from 3.9 percent reported last month. Stronger consumer and business spending fueled the surge.

The data reassured investors that the U.S. economic expansion could buoy the global economy and that declines in oil prices, which have recently hit 5-1/2-year lows, were a boon for consumers. Brent crude oil steadied above $60 a barrel after the data.

The gains in U.S. shares pushed the Dow over 18,000 for the first time in its history, with the index reaching a high of 18,051.14.

?This number makes anybody who is short the market worry,? said Michael Jones, chief investment officer at RiverFront Investment Group in Richmond, Virginia. "The U.S. is the engine that can pull the global economy."

Other data showed U.S. consumer sentiment jumped in December to its highest level in nearly eight years on cheaper gasoline and better job and wage prospects.

The data strengthened the U.S. dollar, which hit its highest level against a basket of major currencies in over 8 years, while the euro plumbed 28-month lows against the greenback.

The U.S. data combined with positive economic news from Spain and Portugal to push European equities higher. A fall in Greek stocks limited gains in European stocks, however, on the prospect of early elections that could put Greece's rescue package at risk.

The gains in U.S. and European shares were offset by weak sentiment in China, which halted a four-day rally in emerging market shares and resulted in a measure of worldwide equity indexes trading slightly lower.

MSCI's all-country world index <.MIWD00000PUS> was last down 0.2 percent at 419.97, while Europe's broad FTSEurofirst 300 index <.FTEU3> was last up 0.5 percent at 1,373.78.

The Dow Jones industrial average <.DJI> was up 82.72 points, or 0.46 percent, at 18,042.16. The Standard & Poor's 500 Index <.SPX> was up 4.40 points, or 0.21 percent, at 2,082.94. The Nasdaq Composite Index <.IXIC> was down 10.28 points, or 0.22 percent, at 4,771.14.

U.S. safe-haven Treasury yields, which move inversely to prices, edged higher following the U.S. data. Benchmark 10-year Treasury yields were last at 2.20 percent, from a yield of 2.16 percent late Monday.

The dollar index <.DXY>, which tracks the greenback versus a basket of six currencies, was last up .32 percent at 90.065.

Brent crude was last up 60 cents at $60.71 a barrel. U.S. crude was up 96 cents, at $56.22 per barrel.

Spot gold prices rebounded and were last up $4 to $1,178.66 an ounce.

(Additional reporting by Chuck Mikolajczak in New York and Sudip Kar-Gupta and Christopher Johnson in London; Editing by Dan Grebler)