GLOBAL MARKETS-Stocks, dollar up on sunnier US outlook

                                

                                
 * Developed market stocks up on hopes of growth momentum
                                
 * Dollar up vs euro on improved U.S. economic outlook
                                
 * Emerging stocks fall on food inflation fears
  (Updates with U.S. markets open, quotes, data)
                                
 By Manuela Badawy and Jeremy Gaunt
                                
 NEW YORK/LONDON, Jan 6 (Reuters) - U.S., European and
Japanese stocks climbed on Thursday on expectations for renewed
U.S. economic growth, while emerging markets slipped on
concerns about rising food prices.
                                
 The dollar rose against the euro after U.S. data showed
jobless claims rose more than expected last week, but the
four-week average fell to its lowest in more than two years,
indicating the labor market continued to improve. For details,
see [ID:nN05283244]
                                
 U.S. Treasuries edged up, with yields coming off highs
reached the previous day after surprisingly strong U.S. private
employment data, but remained vulnerable ahead of Friday's
government non-farm payrolls report.
                                
 Jobs are often a lagging indicator of economic health and
improvement can show the recovery is becoming more
sustainable.
                                
 U.S. private employers added 297,000 jobs in December,
according to Wednesday's ADP Employer Services report, nearly
triple forecasts.
                                
 "Claims today are overshadowed by the large surprise from
the ADP report yesterday," said Zach Pandl, economist at Nomura
Securities International Inc in New York.
                                
 "Markets in our view are looking for a very strong
confirmation of the labor market rebound. We think tomorrow is
going to be supportive of an ongoing recovery and greater
momentum in general in the economy."
                                
 The Dow Jones industrial average <.DJI> dipped 12.26
points, or 0.10 percent, to 11,710.63. The Standard & Poor's
500 Index <.GSPC> was off 1.41 points, or 0.11 percent, to
1,275.15. The Nasdaq Composite Index <.IXIC> added 4.78 points,
or 0.18 percent, to 2,706.98.
                                
 World stocks as measured by MSCI <.MIWD00000PUS> were up
0.2 percent, mainly on gains in Japan and Europe. Emerging
markets stocks <.MSCIEF> were down 0.5 percent.
                                
 Food prices rose to a record high last month, the United
Nations' food agency said this week. Emerging markets are
traditionally more susceptible to the food inflation.
                                
 Developed markets were bullish. The pan-European
FTSEurofirst 300 <.FTEU3> was up 0.7 percent for a more than
2.7 percent rise so far this year.
                                
 Euro zone economic sentiment jumped in December, mainly on
a sharp increase in optimism in industry and the retail sector,
but inflation expectations also surged.
                                
 Japan's Nikkei <.N225> stormed to an eight-month closing
high, up 1.4 percent for a nearly 3 percent gain in three
sessions.
                                
 DOLLAR UP
                                
 The dollar was higher against the euro, bolstered by
generally upbeat U.S. data. Investors however, were focused on
the U.S. payrolls report, which is expected to show job gains
of 175,000 in December.
                                
 "The market expects a significantly strong figure for
Friday's payrolls, but they could be overestimating. So there
is scope for disappointment," said Lee Hardman, currency
economist at Bank of Tokyo-Mitsubishi UFJ.
                                
 The dollar index, which measures the greenback's value
against a basket of major currencies, was 0.3 percent higher at
80.48 <.DXY>, a sharp turnaround from last week's 78.775
trough.
                                
 But investors were reluctant to chase the dollar much
higher ahead of the payrolls data.
                                
 The euro fell 0.56 percent to $1.3075. <EUR=>
                                
 Currency markets digested moves by Brazil's central bank to
curb speculation with a reserve requirement on bank short
dollar positions. The local real, which up sharply along with
many emerging market currencies, fell.
                                
 U.S. Treasury debt prices rose as investors shopped for
bargains after the ADP report and looked ahead to the Friday
data.
                                
 The benchmark 10-year U.S. Treasury note <US10YT=RR> was up
4/32, with the yield at 3.446 percent. The 2-year U.S. Treasury
note <US2YT=RR> added 1/32, with the yield at 0.6926 percent.
The 30-year U.S. Treasury bond <US30YT=RR> was down 5/32, with
the yield at 4.5509 percent.
                                
 The dollar's strength and the data that suggested the U.S.
economy was gaining traction kept commodities and energy prices
pressured.
                                
 U.S. light sweet crude oil <CLc1> fell $1.55, or 1.7
percent, to $88.75 per barrel, and spot gold prices <XAU=>
dropped $9.20, or 0.7 percent, to  $1,367.60 an ounce.
  (To read Reuters Global Investing Blog click on
http://blogs.reuters.com/globalinvesting; for the MacroScope
Blog click on http://blogs.reuters.com/macroscope; for Hedge
Fund Blog click on http://blogs.reuters.com/hedgehub)
  (Additional reporting by Rodrigo Campos, Gertrude
Chavez-Dreyfuss and Ellen Freilich in New York and Tamawa Desai
and Harpreet Bhal London; editing by Jeffrey Benkoe)