Rising equity markets and positive economic data provided support for commodities on Tuesday, but gains were capped and analysts warned there was a lack of hard evidence the world's economy was on the mend. Bullish data from leading commodity-consumers the United States, China and India pushed oil close to its highest level this year and lifted industrial metals to two-week peaks. "Stronger equity markets are driving oil prices ... these are just symptoms and not the real driving force. The real driving force is changing sentiment. People are looking for the slowdown of the slowdown," said Eugen Weinberg of Commerzbank. "But we're really missing the evidence." Regardless of established facts, greater investor appetite for risk pushed the Reuters-Jefferies CRB index, a global commodities benchmark, to close at its highest level for nearly four months on Monday. World stock markets hit a fresh four-month high on Tuesday. Confidence could be tested later this week when the results of a stress test on 19 U.S. banks are released. A source familiar with official talks said regulators would instruct about 10 of the banks to raise more capital. Analysts said any new evidence of bank weakness could spur profit-taking across a range of markets, but for now they were digesting a batch of positive data released on Monday. Marking the first increase since September, U.S. construction spending rose by 0.3 percent in March and pending U.S. existing home sales also climbed. In addition, China and India showed signs of recovery. A Chinese manufacturing index increased to a nine-month high of 50.1 in April from 44.8 in March and Indian factory activity expanded for the first time in five months. OIL NEAR THIS YEAR'S HIGH The news helped to push U.S. light crude to a session high of $54.60, just below this year's high of $54.66, which was struck on March 26. By 1114 GMT, it had shrunk back to $54.27, down 20 cents from the previous close, as the contract butted against tough technical resistance. Copper for delivery in three months on the London Metal Exchange firmed to $4,640, after earlier touching $4,750, its strongest since mid-April. "Base metals look toppy, but the tailwind of falling LME supply, for copper at least, looks likely to continue for the time being," said Mark Pervan, senior commodities analyst at ANZ. Spot gold edged up to $902.70 an ounce from New York's notional close of $902.35. Bullion jumped by almost 2 percent on Monday boosted by demand from jewellers in main consumer India and pent-up buying ahead of the results of the stress tests on U.S. banks. "I would say that the very much weaker dollar has supported gold a bit. But I don't think we are out of the woods yet," said Adrian Koh, analyst at Phillip Futures in Singapore. "I think today or the next will be key for gold as we are hovering near key downtrend resistance around $910-$915." A weaker dollar is generally bullish for dollar-denominated commodities. In European trading on Tuesday, the dollar edged higher against a basket of currencies but remained close to its lowest levels since early April. Apart from the general optimism, shrinking global supplies and steady Chinese demand again drove the soybean market, which hit a seven-month high on Monday. Chicago Board of Trade soybeans for May delivery rose nearly by one percent to $11.25 per bushel after rising to a high of $11.33-1/4 on Monday. Corn and wheat also strengthened, tracking soy and drawing support from concerns about weather. CBOT corn for May delivery also gained nearly one percent to $4.01-1/2 a bushel and May wheat gained 1.3 percent to $5.46-3/4 a bushel.

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