London (Reuters): World stocks hit their highest in five weeks on Tuesday as a dovish tone from Janet Yellen cooled near-term U.S. rate hike bets and a seven-month peak in crude prices cheered oil firms.

European stocks were up 1% in early trading after Wall Street’s S&P 500 had hit a seven-month high on Monday and Asia gained 1.5% overnight.

It came after the Fed chief Yellen had called last week’s U.S. jobs numbers disappointing and opted not to repeat her recent message that U.S. interest rates could rise again in the coming months.

That was balanced however, by her cautioning against attaching too much significance to the payrolls data in isolation and as she pointed to other more upbeat signals for the world’s largest economy.

“Yellen has certainly put pay to a rate rise in June but there’s more going on here than that,” said Aberdeen Asset Management’s Luke Bartholomew.

“Her message really is that the U.S. is making consistent progress towards full-employment, that inflation should pick up and there’s more positives than negatives. This should give those hoping for a July rate rise some modicum of solace.”

With the Fed suggesting it was in no rush to increase interest rates, bond yields slipped with 10-year U.S. Treasury yields retreating to 1.74% from 1.84% last week. Benchmark yields are down 63 basis points so far this year.

European bonds barely moved in early trading with German Bunds already near all-time lows thanks to the European Central Bank’s unprecedented stimulus efforts.

In the FX markets, Yellen’s comments also kept the dollar pinned near a one-month low against other top currencies.

The Australian dollar meanwhile jumped 1% after the Reserve Bank of Australia appeared to raise the bar for further rate cuts. Sterling also climbed 0.7% to $1.4524 as jostling continued over the UK’s June 23 vote on its European Union membership.

Earlier on Tuesday, Japanese Finance Minister Taro Aso told reporters that he would refrain from commenting on Japan’s possible response in the currency market if the yen were to rise further.

Aso declined to comment on U.S. Treasury Secretary Jack Lew’s remark over the weekend that described recent currency market moves as “orderly” in a sign of caution towards currency intervention.

Oil prices stay close to 2016 highs on ebbing supply, softer dollar

London (Reuters): Oil prices held close to their highest in seven months on Tuesday, buoyed by the U.S. dollar skimming its lowest in nearly a month and by falling Nigerian oil output after a spate of attacks on infrastructure.

Brent crude futures were up 17 cents on the day at $50.72 a barrel by 0840 GMT. They hit a 2016 peak of $50.83 on Monday, their highest level since November.

US crude oil futures were up 14 cents at $49.83 a barrel.

“With Brent staying above $50, oil is on an upward momentum with the restart of French refineries that were shut on strikes and pipeline attacks in Nigeria,” said Kaname Gokon at brokerage Okato Shoji in Tokyo.

Preliminary work got under way on Monday to restart three of Total’s French oil refineries, stopped as part of nationwide strikes.

Crude futures have nearly doubled since January when they hit their lowest since late 2003 buoyed by supply outages in Canada, Venezuela, Libya and Nigeria.

Nigeria’s Bonny Light crude output is down by an estimated 170,000 barrels per day (bpd) following attacks on pipeline infrastructure, according to one source.

OPEC failed to agree on a clear oil output strategy last week, but traders said Saudi Arabia’s promise not to flood the market has provided support to oil.

Oil, along with the rest of the commodities complex, has also been supported by a weaker dollar.

Federal Reserve Chair Janet Yellen has indicated the U.S. central bank will raise interest rates, but has not given a sense of when.