* Global stocks extend last week's rally on risk appetite
* Oil rises on recovery hopes, signs of China demand
* Dollar holds ground vs euro on hopes for U.S. recovery
* Bond prices fall as economic data points to recovery
(Updates with U.S. markets activity, changes dateline;
previous LONDON)
By Herbert Lash
NEW YORK, Aug 24 (Reuters) - World stocks extended last
week's rally on Monday and crude oil marched higher after U.S.
economic news and stronger-than-expected data from the euro
zone spurred optimism about the global economic outlook.
Oil rose toward $75 a barrel, within sight of a 10-month
high, as signs of an economic recovery drove hopes that energy
demand will rebound. []
Equity markets around the world climbed to 10-month highs,
with global stocks as measured by MSCI's all-country world
index <.MIWD00000PUS> on track for a fifth straight session of
gains. The index was up 1.1 percent.
The dollar, which also usually declines when risk sentiment
picks up, held its ground against the euro and sterling.
The yen fell broadly while the U.S. dollar slid against
commodity currencies such as the Australian and New Zealand
dollars as the equity gains solid U.S. and euro zone economic
news boosted risk sentiment. []
Euro zone industrial new orders in June rebounded 3.1
percent month-on-month, or more than expected, the European
Union statistics office Eurostat said. []
In the United States, economic activity improved again in
July from extremely weak levels earlier this year, suggesting
the recession is waning, a report from the Federal Reserve Bank
of Chicago showed. []
China's latest economic data for July, meanwhile, indicated
that while growth was moderating after a strong second quarter,
the recovery remained on track to achieve the government's goal
of 8 percent growth for the full year. []
"The Chinese news was good and we had some positive news
out of Europe as well," said Rob Montefusco, a trader at Sucden
Financial in London. "Technicals are pointing upwards." []
In early Wall Street trade, advancers were beating
decliners by about 3 to 1 on the New York Stock Exchange.
Seventy-five stocks hit 52-week highs, while zero sunk to new
lows.
After 10 a.m., the Dow Jones industrial average <> was
up 61.52 points, or 0.65 percent, at 9,567.48. The Standard &
Poor's 500 Index <.SPX> was up 7.27 points, or 0.71 percent, at
1,033.40. The Nasdaq Composite Index <> was up 12.49
points, or 0.62 percent, at 2,033.39.
Investors increased their risk-taking in the wake of
stronger-than-expected U.S. existing home sales data last
Friday and upbeat comments from Federal Reserve Chairman Ben
Bernanke.
Copper prices rose to their highest in more than a week,
helped by strong investment demand and bets the economic crisis
is petering out.
Jesper Dannesbee, a senior commodities strategist at
Societe General, said real demand has not improved that much it
will improve gradually through the year.
"This is follow through from Friday. There is a general
appetite for risky assets driven by cheap money and lax
monetary policy," Dannesbee said.
U.S. and euro zone government debt prices mostly eased as
rising stock markets eroded the safe-haven appeal of bonds.
Investors also worried whether new U.S. debt issuance this week
would be welcomed by buyers. []
The benchmark 10-year U.S. Treasury note <US10YT=RR> was
down 1/32 in price to yield about 3.57 percent.
U.S. crude <CLc1> rose 51 cents to $74.40 a barrel.
(Reporting by Gertrude Chavez-Dreyfuss and Chris Reese in New
York; Alex Lawler and Ian Chua in London; writing by Herbert
Lash)
