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* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
* World shares extend two-month highs as miners, banks makeground
* Iron ore at near 2-year high after Brazil orders damclosures
* Dollar waits for Trump State of Union Address
* Aussie dollar gains as central bank stays firm withmessage
* Euro slips on lacklustre economic data
By Marc Jones
LONDON, Feb 5 (Reuters) - World stocks extended theirwhite-hot start to the year on Tuesday, while the dollar wasstraining for a fourth day of gains as traders awaited U.S.President Donald Trump's State of the Union address.
The U.S. Federal Reserve's recent caution continued to feedrisk appetite but there were a number of idiosyncratic factorsmarching markets higher.
News that oil giant BP had doubled its profits sawEurope's oil and gas sector jump 1.5 percent andpropelled London's FTSE toward its longest winningstreak since April.
Wall Street futures were pointing up again while minerswere strong globally as well after news that Brazil had orderedthe world's largest iron ore miner, Vale, to close eight of itsdams in the wake of a deadly collapse last month.
Iron ore prices surged 14 percent at the end of last week inanticipation of the move and are now at a near two-year high.
"Our fundamental view is there no reason for this incrediblemove, so is it just speculation, a frenzy about possiblestimulus in China?" said Saxo Bank's head of FX Strategy JohnHardy. "What should we do with it? I don't know, but it shouldbe noted."
China and large parts of Asia had been closed for Lunar NewYear celebrations overnight but the markets that were open madesome headway.
Japan's Nikkei average marked its highest level inseven weeks before fading to finish slightly lower.
Australian shares suffered no such fatigue. Theyjumped 2 percent, with long-battered financials surgingafter a government-appointed misconduct inquiry left thestructure of the country's powerful banks in place.
Wall Street was still being cheered after technologyand industrials helped the S&P 500 andNasdaq break through 100-day moving averages on Monday and sentthe VIX "fear gauge" to a four-month low.
Futures had the S&P, Dow and Nasdaq opening 0.2-0.3 percenthigher, and with Europe still rallying, MSCI's gauge of stocksacross the globe scaled fresh two-month highsfollowing its best January on record.
In the currency markets, the dollar held on to recent gainsagainst its major peers as investors waited on monthly ISMsurvey data, having lapped up Friday's strong payrolls numberand a manufacturing survey.
After reining in rate hike expectations last week the Fedtook the unusual step of issuing a statement on Monday sayingthat its head Jerome Powell had told U.S. President Donald Trumpand Treasury Secretary Steven Mnuchin that "the path of policywill depend entirely on incoming economic information."
The dollar's index against six major currencies was afraction higher at 95.916, having gained 0.27 percent on Monday,while U.S. Treasury yields were also creeping up again.
PULL TO PARITY
The euro weakened slightly to $1.1420 after datashowing euro zone business growth almost stalled in January butthe bigger moves were elsewhere.
The Swiss franc looked to be heading for another spell ofparity against the dollar after fallingacross the board.
Some of its sharpest losses were against high-yieldingcurrencies such as the Australian dollar, which waslifted to $0.72 overnight when the central bank soundedless dovish than markets had wagered as it kept interest rateson hold.
"With the dollar/Swiss franc breaking through parity, somestops seem to have triggered in a broadly risk-on market," saidKamal Sharma, director of G10 FX strategy at Bank of AmericaMerrill Lynch.
Traders' attention was already shifting to Trump's delayedState of the Union address, due at 2100 ET Tuesday/0200 GMTWednesday.
He told a White House event over the weekend that he mightdeclare a national "emergency" because Democrats in Congressweren't moving toward a deal to provide money to build a wall onthe border with Mexico.
Such a step would likely prompt a court challenge fromDemocrats but there will also be focus on what message Trumpsends on issues like the ongoing trade war with China andpotentially some other parts of the world.
"If President Trump persists in his long-promised wall alongthe U.S.-Mexico border in the upcoming address, it would cap thedollar's rally," said Kengo Suzuki, chief FX strategist atMizuho Securities.
(Additional reporting by Hideyuki Sano in Tokyo and Tom Finn inLondon; Editing by Catherine Evans)
