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 Investors' relief that the Fed probably won't move until some time
next year saw them take on more risk across the board, with
commodities and emerging market assets also recovering some of their
recent heavy losses.
Brent crude oil was on track for its biggest weekly rise since March
2009, while zinc soared 9 percent - its biggest daily gain for seven
years - after troubled mining giant Glencore <GLEN.L> said it would
cut production.
In early trading, the MSCI world equity index <.MIWD00000PUS> was up
0.6 percent. That was the eighth rise in a row, and put the index up
4.3 percent on the week, its best performance since late 2011.
The FTSEuroFirst index of the leading 300 European shares was up 0.8
percent <.FTEU3> on the day and up 5 percent on the week. Germany's
DAX <.GDAXI> and France's CAC 40 <.FCHI> were also up 0.8 percent in
early trading.
"Investors love these Fed minutes because they signal a strong
economy and low rates," said Jasper Lawler, market analyst at CMC
Markets in London.
 "If the decision was a close call then the message is that the Fed
feels good about the U.S., but is just being cautious over emerging
markets," he said.
The Fed minutes revealed the extent to which policymakers are
concerned that a global economic slowdown might threaten the U.S.
economic outlook. Though they said overseas turmoil had not
"materially altered" economic prospects, they opted to hold interest
rates steady last month.
An unexpectedly weak U.S. jobs report for September last week had
led many investors to speculate that the Fed will not deliver its
first hike since 2006 until 2016, a feeling that was strengthened by
the minutes.
Earlier in Asia MSCI's broadest index of Asia-Pacific shares outside
Japan <.MIAPJ0000PUS> rose 1.4 percent, on track for a robust weekly
gain of 6.5 percent, its best week in four years. Japan's Nikkei
<.N225> rose 1.6 percent.
U.S. futures pointed to some light profit-taking at the open on Wall
Street as the U.S. earnings season gets into full swing, with the
S&P 500 expected to come off 0.3 percent from Thursday's seven-week
closing high <ESc1>.
PIVOT POINT?
The relief rally and bargain-hunting across commodities and emerging
markets got a shot in the arm on Friday, with Brent crude oil
futures <LCOc1> on course for a rise of more than 11 percent on the
week.
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Brent was last up 0.8 percent on the day at $53.46 a barrel, and
U.S. crude was up 1.2 percent at $50.01 a barrel <CLc1>. Oil also
got a boost overnight after forecaster PIRA Energy Group predicted
crude prices would rise to $70 per barrel by the end of 2016.
"For now, the cloud of uncertainty has been lifted and traders have
pivoted," said Naeem Aslam, chief market analyst at Avatrade.
Three-month zinc futures <CMZN3> were up 9 percent on the London
Metal Exchange at $1,818 a tonne after Glencore said it will cut
production by 500,000 tonnes, equivalent to 4 percent of the world's
output.
Zinc had fallen 30 percent since May to a five-year low, so the
rebound could mark the bottom of the market and the commodities
complex in general, some analysts said.
Still, there are grounds for caution in commodities, as highlighted
by Alcoa's third quarter profit miss announced on Thursday <AA.N>
In currencies, the dollar retreated on the back of the dovish Fed
minutes, with the dollar index down around a third of one percent
<.DXY> and the euro up 0.5 percent at $1.1330 <EUR=>.
The 10-year U.S. Treasury yield <US10YT=RR> slipped a couple of
basis points to 2.09 percent, as did the 30-year yield to 2.92
percent <US30YT=RR>.
On Thursday HSBC issued one of the boldest U.S. and European yield
forecasts of all the big investment banks, predicting the 10-year
U.S. yield will fall to 1.5 percent and the equivalent German bund
yield at just 0.2 percent next year.
(Additional reporting by Lisa Twaronite in Tokyo; Editing by Toby
Chopra)
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