* U.S. would support extension of Europe stability facility
* Stocks bounce back on China, Europe, U.S. data
* Euro rebounds as investors eye ECB for debt moves
* Portugal sells all debt offered, pays record high yields
(Updates with U.S. markets close, Nikkei futures)
By Walter Brandimarte
NEW YORK , Dec 1 (Reuters) - World stocks and the euro
jumped on Wednesday on hopes the United States would further
support debt-burdened euro-zone countries and bets the
European Central Bank could step up its bond-buying program.
Better-than-anticipated economic data in China, Europe and
the United States also whetted investors' appetite for risk,
driving major U.S. and European stock indexes up more than 2
percent.
Asia looked set to rise as well, with Japan's Nikkei
futures <NKZ0> rising 225 points in Chicago.
Portuguese debt costs fell along with those of other
peripheral euro-zone countries as some investors bet the ECB
will take further action at its meeting on Thursday.
Portugal also was able to sell 500 million euros in
12-month T-bills but, in a sign of sagging investor confidence
in the country, yields paid on the debt rose to a euro
lifetime record of 5.281 percent, from 4.813 percent two weeks
ago.
The euro jumped 1.2 percent and traded above $1.31, also
lifted by news that the United States would be ready to
support the extension of the European Financial Stability
Facility via additional commitment of cash from the
International Monetary Fund. []
"It seems that as bad as Europe's issues are, there is a
growing sense that this is not a systemic problem that is
going to bring the whole system down," said Jack Ablin, chief
investment officer at Harris Private Bank in Chicago.
"Beyond their troubles, we're seeing strong results in
other parts of the world."
Some analysts warned, however, that the rebound of the
European single currency seemed to be just temporary.
"I personally think the market will be disappointed
tomorrow because the lack of a consensus within the ECB about
bond purchases will cause it to deliver less than what the
market is hoping for," said Aston Chan, portfolio manager at
GLC, a $1.2 billion London-based global macro hedge fund.
Others said dramatic action after the ECB policy meeting
on Thursday was unlikely, but that the spreading euro-zone
debt crisis demanded radical measures at some point.
[]
FACTORIES HUM, PRIVATE PAYROLLS GROW
Investors' appetite for risky assets also grew after
better-than-expected Chinese factory data for November, which
showed one of the world's largest economic engines was in good
health. []
In Europe, the euro zone's manufacturing sector expanded
at its fastest pace in four months in November, led by
heavyweights Germany and France. Britain's manufacturing hit a
16-year high.
U.S. private-sector payrolls also registered their biggest
rise in three years in November, ADP Employer Services said,
lifting optimism about the job market ahead of Friday's key
government employment report. []
The MSCI All-Country World Index <.MIWD00000PUS> climbed
1.95 percent after three consecutive sessions of losses.
The Dow Jones industrial average <> rose 249.76
points, or 2.27 percent, to 11,255.78, while the Standard &
Poor's 500 Index <.SPX> jumped 25.52 points, or 2.16 percent,
to 1,206.07. The Nasdaq Composite Index <> gained 51.20
points, or 2.05 percent, to close at 2,549.43.
In Europe, the FTSEurofirst 300 <> rose 2.06
percent, its biggest one-day gain in three months, to finish
at 1,089.16. Shares of miners led the market higher after the
strong factory output data from top metals consumer China.
Emerging market stocks measured by a MSCI benchmark index
<.MSCIEF> jumped 2.01 percent.
The positive economic data also encouraged investors to
step out of the safe-haven dollar and Treasuries.
The U.S. dollar slid 0.63 percent against a basket of
major currencies, according to the U.S. Dollar Index <.DXY>.
The benchmark 10-year U.S. Treasury note <US10YT=RR> fell
nearly 1-1/2 points in price, boosting its yield to 2.972
percent from 2.8 percent late Tuesday.
Commodities also posted gains, with U.S. crude oil prices
<CLc1> jumping 3.14 percent, or $2.64, to settle at $86.75 per
barrel. The spot price of gold <XAU=> edged up 0.15 percent to
$1,386.50 an ounce.
(Reporting and writing by Walter Brandimarte; Additional
reporting by Rodrigo Campos and Gertrude Chavez-Dreyfuss;
Editing by Jan Paschal)
