* Stocks bounce higher off lows
* Dollar broadly weaker
By Jeremy Gaunt, European Investment Correspondent
LONDON, July 6 (Reuters) - Investors boosted global stocks
strongly on Tuesday and sold the dollar, lifting equities off
six- and seven-week lows.
MSCI's all-country world stock index <.MIWD00000PUS> was up
0.8 percent, with Europe putting in gains of around 1.5 percent.
The world index is still down more than 10 percent for the
year. Stocks were weaker on Monday in response to data showing a
slower-than-expected improvement in U.S. employment.
Recovering on Tuesday, the FTSEurofirst 300 <> bounced
back from six-week closing lows with a gain of 1.5 percent while
Japan's Nikkei <> closed up 0.8 percent, coming off a
seven-week low.
Emerging market stocks <.MSCIEF> were up 1 percent.
"Markets are a bit oversold. The decline has been quite
strong," said Joost de Graaf, senior portfolio manager at Kempen
Capital Management in The Netherlands.
"There are (also) hopes that second-quarter earnings will be
OK and will lift some of the negative atmosphere."
Investors are currently beset by concern that the global
economic recovery is slowing enough to send some countries into
a double-dip recession.
This is combined with nagging fears that the recovery seen
so far is all down to government action, which may soon end.
"Awash with private sector debt (in its various forms), the
world's major economies may struggle to maintain their forward
impetus once policy stimulus, both fiscal and monetary, is set
on the path towards normalisation," BNY Mellon said in a note.
"Early signs of ebbing momentum are of concern."
DOLLAR HIT
The more risk-friendly mood hit the dollar, which fell a
third of a percent against a basket of major currencies.
It was particularly weak against the high-yielding
Australian dollar <AUD=>, which rose more than 1 percent at one
stage on cautiously optimistic remarks from the Australian
central bank after it left interest rates unchanged as expected.
[]
"The strength in the Aussie was somewhat surprising given
the change in the RBA's wording suggests it may keep interest
rates lower for some time," said Ulrich Leuchtmann, currency
strategist at Commerzbank in Frankfurt.
"But risky assets are performing well, so there's been a
gradual return of risk appetite."
The euro gained a third of a percent to $1.2580 <EUR=>.
Euro zone government bonds sold off as a result of the rise
in equities.
The 10- and 2-year benchmark yields rose two to three basis
points.
(Additional reporting by Naomi Tajitsu; Editing by Hugh Lawson)
