* Dow, S&P, Nasdaq reach record intraday highs
* Euro zone PMIs at nearly 6 years offset HSBC profit woes
* Dollar climbs on revived bets on U.S. rate hike in March
* Oil futures jump on OPEC stance on output cuts (Updates to afternoon U.S. trading)
By Richard Leong and Saqib Iqbal Ahmed
NEW YORK, Feb 21 (Reuters) - Stock prices across the world climbed to record highs on Tuesday on news euro zone business activity accelerated to a six-year high, while the dollar gained after hawkish comments from Federal Reserve officials.
The revived possibility of a U.S. rate hike next month, together with demand for risky assets, weakened gold prices. It also propelled bond yields higher before they retreated on safe-haven demand as polls showed anti-EU and anti-immigrant Marine Le Pen holding her lead in the first round of the French presidential election. futures rose after OPEC said it was sticking to its deal to reduce output. rally in equity markets around the globe, led by Wall Street, has been stoked by hopes of tax cuts, infrastructure spending and looser regulations from U.S. President Donald Trump and a Republican-controlled Congress.
Details on U.S. fiscal stimuli remained sketchy, but investors seemed patient for progress on these possible programs as they have been assuaged by upbeat company results.
"There was a period last week, I think, where people were getting a little worried about whether the administration was getting sidetracked," said Rick Meckler, president of LibertyView Capital Management in Jersey City, New Jersey.
"A couple days later, those worries seem to have temporarily subsided," Meckler said.
MSCI's world stock index .MIWD00000PUS which tracks shares in 45 nations, rose 0.4 percent to 446.20, an all-time peak.
On Wall Street, the Dow Jones Industrial Average .DJI rose 122.12 points, or 0.59 percent, to 20,746.17, the S&P 500 .SPX gained 14.71 points, or 0.63 percent, to 2,365.87 and the Nasdaq Composite .IXIC added 24.70 points, or 0.42 percent, to 5,863.27. three U.S. stock indexes hit record intraday highs, led by stronger-than-forecast results from retailers Wal-Mart (NYSE:WMT) WMT.N , Macy's (NYSE:M) M.N and Home Depot (NYSE:HD) HD.N . benchmark index of 300 leading shares .FTEU3 touched its highest since Dec. 2015, ended up 0.6 percent at 1,471.87 points. Purchasing manager index (PMI) reports showed the euro zone economy expanding much faster and more smoothly than expected. stocks had traded lower after Europe's biggest bank HSBC's HSBA.L surprise 62 percent drop in annual profits. appetite for equities and chances of another U.S. rate increase in the coming months lifted the dollar index .DXY by 0.4 percent at 101.37. Fed President Patrick Harker said on Tuesday he would likely support a quarter point rate increase at the central bank's March 14-15 meeting if the economy improves further. Fed President Loretta Mester said late on Monday she would be comfortable raising rates if the economy maintained its current performance.
Interest rates futures implied traders saw a 22-percent chance the Fed will raise rates next month FFH7 , up from 18 percent on Friday, CME Group's (NASDAQ:CME) FedWatch program showed.
U.S. financial markets were closed on Monday for Presidents Day.
U.S. 10-year Treasury yield US10YT=RR was fractionally higher at 2.427 percent, while German 10-year Bund yield DE10YT=RR edged up 0.6 basis point at 0.305 percent.
In the oil market, Brent crude LCOc1 finished 48 cents or 0.85 percent higher at $56.66 a barrel. U.S. crude CLc1 settled up 66 cents or 1.24 percent at $54.06. gold prices XAU= slipped 0.13 percent, to $1,236.60 an ounce.
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http://reut.rs/1WAiOSC Global currencies vs. dollar
http://tmsnrt.rs/2egbfVh Global bonds dashboard
http://tmsnrt.rs/2fPTds0
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