NEW YORK — Global equity markets gained on Friday, backed by higher prices for oil and other commodities, while data showed the US economy grew faster than expected in the fourth quarter.

US gross domestic product growth was revised higher, to a 1.0% annual rate, while economists were expecting it to come in at 0.4%. The robust US economic report also boosted Treasury yields and the dollar.

Europe’s FTSEurofirst 300 stock index rose 2%, outperforming Wall Street, supported by a rally in mining shares as industrial metals such as copper and aluminium gained.

Benchmark Brent crude jumped to a seven-week high before paring gains.

With oil’s steep one-and-a-half year slide, the performance of equities has been tightly linked to the commodity’s daily fluctuations as investors say oil has been seen as a proxy for the health of the global economy.

“Today’s market is going to be all about oil and economic data,” said Peter Cardillo, chief market economist at First Standard Financial in New York.

The Dow Jones industrial average rose 56.84 points, or 0.34%, to 16,754.13, the S&P 500 gained 9.56 points, or 0.49%, to 1,961.26 and the Nasdaq Composite added 28.00 points, or 0.61%, to 4,610.20.

With equity markets off to a slow start in 2016 amid concerns about an economic slowdown, investors are watching the next move from the US Federal Reserve after the central bank raised rates in December.

Rosy data

Friday’s encouraging economic data may be interpreted by investors as raising the chances for a rate hike, potentially pressuring stocks, said Walter Todd, chief investment officer with Greenwood Capital in South Carolina.

“I think better economic data is good regardless, but the market is nervous about the Fed moving too quickly,” Todd said.

Investors were also eyeing a meeting of officials of G20 leading economies in Shanghai, where China sought to restore confidence in its economy, the world’s second-biggest.

European equities rallied for a second day and touched a three-week high.

MSCI’s gauge of global stock markets was up 0.5%. Brent crude prices were on track for their first weekly gain in a month as strong US gasoline demand and supply disruptions outweighed concerns about a fundamental glut.

Brent crude rose 3% to $36.34 a barrel, while US crude gained 1.8% to $33.67 a barrel.

Gains in oil along with the US economic data helped push US Treasury yields higher.

Benchmark 10-year notes were last down 21/32 in price to yield 1.7675%, up from 1.70% late on Thursday.

“We got some pretty surprising GDP data, an upward revision, and not too many people had pegged that,” said Thomas Simons, a money market economist at Jefferies in New York.

The dollar gained 0.9% against a basket of six currencies, while the euro dropped 0.9% against the greenback.

“The fact that GDP was revised higher is a positive for the dollar this morning ... giving confidence to markets that the Fed may resume its tightening policy this year,” said Sireen Harajli, currency strategist at Mizuho Bank in New York.

Reuters