World shares at 3week high as peak rates debate intensifies
Dollar hovers at 2week low
Oil prices tick higher again after sharp fall this month
Middle East troubles remain in focus

LONDON, Oct 12 Reuters World shares rose while the dollar and bond market borrowing costs held steady on Thursday, ahead of key U.S. inflation data that will feed the hotlycontested debate on where global interest rates are now heading.

The week39;s sharp escalation of Middle East tensions ensured the mood remained cautious although Europe39;s shares shuffled to a 3week high after a 1.75 jump by Tokyo and 2 leap in Hong Kong had helped Asia do the same overnight.

Wall Street futures , were pointing to a fifth straight day of gains for the first time since June too, while the dollar was hovering near a twoweek low after Fed meeting minutes on Wednesday had shown caution emerging among its rate setters.

News that Central Huijin Investment, a Chinese state fund, raised stakes in the country39;s big four banks had also boosted confidence in the broader Asian market as Hong Kong39;s heavyweight Hang Seng index jumped 2.0.

China, however, has also issued a notice prohibiting domestic brokerages and their overseas units from taking on new mainland clients for offshore trading, which will restrict capital outflows, Reuters reported on Thursday.

The recent buoyancy in markets also owes much to comments from Federal Reserve officials suggesting U.S. interest rates which tend to drive global…