GLOBAL MARKETS-Global stocks near 2009 highs, dollar at new low

                                
 * U.S. stocks near new 2009 highs
                                
 * US dollar sees new 2009 lows as risk appetite increases
                                
 * Crude oil rises above $72 a barrel on weaker dollar
 (Updates with U.S. markets activity, changes dateline;
previous LONDON)
                                
 By Herbert Lash
                                
 NEW YORK, Sept 9 (Reuters) - Global stocks advanced on
Wednesday, with major indexes setting new highs for 2009 as
evidence of economic recovery mounts, while a weaker U.S.
dollar spurred investors to buy commodities as a hedge against
inflation.
                                
 The U.S. dollar slipped again, touching new lows for 2009
against major currencies, as faith in economic recovery
persuaded investors to move money into riskier assets and away
from safe-havens. [ID:nN09535694]
                                
 Gold bullion prices tested the $1,000 level and the
benchmark S&P 500 stock index was on track to close at its
highest level for the year. Britain's top share index <.FTSE>
closed above the 5,000 level for the first time since October
2008.
                                
 The gains in world equity markets drew investors away from
safe-haven government debt, while the falling dollar helped to
push up oil prices and the share price of energy companies.
                                
 "It's very clear that investors are taking on riskier
positions," said William Sullivan, chief economist at JVB
Financial Group of Boca Raton, Florida.
                                
 "Cash is flowing into stocks, commodities, crude oil and
corporate bonds and some of that cash is coming out of
intermediate- and long-term Treasuries," Sullivan said.
                                
 The rally in European and U.S. stocks has supported hopes
for economic recovery, and together with the drop in
dollar-based borrowing costs, has encouraged investors to look
for higher returns around the world.
                                
 Commodities have helped propel equities higher in recent
sessions as crude oil futures <CLc1> have climbed and gold rose
above the key $1,000 level on Tuesday.
                                
 At 1 p.m. (1700 GMT), the Dow Jones industrial average
<.DJI> was up 63.56 points, or 0.67 percent, at 9,560.90. The
Standard & Poor's 500 Index <.SPX> was up 9.14 points, or 0.89
percent, at 1,034.53. The Nasdaq Composite Index <.IXIC> was up
25.64 points, or 1.26 percent, at 2,063.41.
                                
 European equities hit an 11-month closing high. Rising oil
prices on the back of a falling dollar boosted energy stocks,
while Commerzbank <CBKG.DE> led the financial sector higher.
[ID:nL988743]
                                
 In London, the benchmark FTSE 100 <.FTSE> closed above the
5,000 level for the first time since October. [ID:nL9157575]
                                
 "Rising oil prices and the return of M&A interest has kept
the FTSE rally going," said Mic Mills, senior trader at ETX
Capital.
                                
 "But while no one wants to be left behind the next move
upwards, that 5,000 level will need more help to be breached
significantly," Mills said.
                                
 Renewed concerns over the dollar's long-term status as the
world's reserve currency and options-related euro buying also
contributed to a dollar sell-off, which started on Tuesday.
                                
 In midday trading in New York, the euro rose about 0.6
percent to $1.4563 <EUR=> after briefly touching $1.46, a fresh
2009 high, according to Reuters data.
                                
 The U.S. dollar index <.DXY> slid 0.5 percent.
                                
 "The dollar trade is ultimately a risk trade. That is, as
risk appetite improves, the dollar gets hurt," said Boris
Schlossberg, a director for currency research at GFT Forex in
New York.
                                
 Oil rose above $72 a barrel for the first time this month
as the falling dollar spurred inflation-hedge buying.
[ID:nL9490929]
                                
 October crude futures <CLc1> gained 1.6 percent to $72.22 a
barrel. London Brent <LCOc1> rose $1.25 to $70.67.
                                
 Most U.S. Treasury prices retreated. Imminent supply of 10-
and 30-year securities added to the selling pressure at the
back of the curve, giving the yield curve its steepest slope
since June 28, analysts said.
                                
 Ten-year Treasury notes <US10YT=RR> were down 7/32 in price
to yield 3.51 percent, the highest in over a week.
                                
 Benchmark 10-year euro zone government bond yields posted
their biggest jump in a month as investors shunned longer dated
Bunds in favor of riskier assets. [ID:nL9143454]
                                
 December Bund futures <FGBLc1> settled at 120.48, down 70
ticks from Tuesday's settlement close, and as low as 120.35, in
the biggest one-day fall in a month.
                                
 Asian stocks drifted lower after hitting a one-year high
earlier on Wednesday. The MSCI index of Asia-Pacific shares
outside Japan <.MIAPJ0000PUS> dipped 0.4 percent and gave up
early gains that pushed the benchmark to a one-year peak.
Japan's Nikkei average <.N225> fell 0.8 percent
 (Reporting by Leah Schnurr, Ellen Freilich, Vivianne Rodrigues
in New York; Emma Farge, Atul Prakash, Jessica Mortimer and Jon
Hopkins in London; writing by Herbert Lash)