By Sinead Carew NEW YORK (Reuters) - Stock around the world rallied on Thursday, shaking off a slump related to China growth fears, as strong U.S. economic data boosted investor sentiment and crude oil rebounded sharply. All three major U.S. indexes were up less than 1 percent in afternoon trade, trimming earlier gains, following share rebounds in China and Europe. The data came after New York Fed President William Dudley had said Wednesday that arguments for a September rate increase "seem less compelling" than only weeks ago, given the threat posed to the U.S. economy by recent market turmoil.
China's central bank on Thursday set its daily reference rate for the yuan currency at a four-year low against the US dollar, but it closed stronger than the previous day. The yuan was fixed at 6.4085 to the greenback, according to the China Foreign Exchange Trade System, just 0.07 percent weaker from the previous day. The yuan still ended the day at 6.4053 to the dollar, up from both Wednesday's close of 6.4095 and the reference rate, also known as central parity.