This will help reign in the U.S. dollar- good for oil(Reuters) - A forecast-smashing growth reading from Germany sent stock markets higher and low-rated bond yields lower on Friday, putting global equities on track for a second straight week of gains. The euro edged higher, on course for a third week of gains - its best performance in just under a year against the dollar - while oil rose above $60 a barrel for the first time this year. Germany's economy grew by a much stronger than expected 0.7 percent in the fourth quarter, a figure described by one economist as a "thunderbolt" that pointed to a stronger 2015 and that would fuel optimism for the broader euro zone economy. The news added to optimism over Greece's debt stand-off with its creditors, as Prime Minister Alexis Tsipras agreed to meet their representatives ahead of a much-anticipated gathering of euro zone finance ministers on Monday. Better-than-expected sales from cosmetics firm L'Oreal (OREP.PA) also cheered investors. "The surprisingly robust figure from Germany is fuelling the hopes that Europe is finally turning the corner," said Saxo Bank trader Pierre Martin. "With the excellent earnings season we have, we just needed a bit of improvement on the macro front to revive the rally, and now we have it." The pan-European FTSEurofirst 300 equity index .FTEU3 was up 0.4 percent at 1213 GMT (07:13 a.m EST) after hitting a seven-year high, while the German DAX .GDAXI index hit a record high. The MSCI All-Country World index .MIWD00000PUS was up 0.3 percent, heading for a second straight week of gains. U.S. equity futures SPc1 were up 0.1 percent. Increased confidence in a recovery saw investors turn to lower-rated debt, with yields on Portuguese, Italian and Spanish 10-year bonds down while their German equivalents rose slightly. Greek borrowing costs also fell and shares rose, with Greek bank stocks sharply up between 9 and 13 percent as investors held out hope that Athens could reach a deal with its creditors. The positive mood followed a rally in Asia, where shares soared on news of a ceasefire accord in Ukraine and risk appetite got a lift from Sweden's interest rate cut. Emerging-markets stocks were at a one-week high, heading for a second straight week of gains, with Russian dollar-denominated stocks at a two-month high. London copper prices hovered near a three-week high, buoyed by a weaker dollar, while oil was supported by signs that deeper industry spending cuts may curb excess supply. (Reporting by Lionel Laurent; Additional reporting by Blaise Robinson, John Geddie, Patrick Graham and Chris Vellacott; Editing by Alison Williams)