updated 1/2/2013 10:39:01 AM ET 2013-01-02T15:39:01

LONDON (Reuters) - World shares hit their highest level since July 2011 on Wednesday after U.S. markets jumped sharply in response to the deal to prevent a fiscal crunch from sending the giant economy back into recession.

MSCI's global share index <.MIWD00000PUS> rose to 346.57 points shortly after Wall Street opened, a peak not seen since July 8, 2011 after which a resurgence in the euro zone debt crisis sparked a sharp sell-off in global equity markets.

Wednesday's gains come after the MSCI global index added 13.5 percent in 2012 - its best year since 2009.

(Reporting by Richard Hubbard; Editing by Toby Chopra)

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