* Strong China, US economic data lift stocks, commodities
* ISM factory data for last month highest since May
* U.S. data lifts dollar against yen and euro
(Updates with U.S. markets' open, U.S. data, changes byline,
dateline, previously LONDON)
By Walker Simon
NEW YORK, Nov 1 (Reuters) - Stocks, commodities and the
dollar rose on Monday after manufacturing strengthened in the
United States and China, the world's two largest economies,
while U.S. Treasuries prices and gold fell.
The pace of growth in U.S. manufacturing quickened in
October, suggesting a sluggish economic recovery may be gaining
some traction, according to an industry report. For details
see, [].
China's official purchasing managers index (PMI) for
manufacturing, for October blew past expectations to rise to a
six-month high. []. The benchmark Shanghai
Composite Index <> of shares rose 2.5 percent.
"There's been a lack of good economic news and this is
certainly helpful with the market particularly up here and
earnings expectations remaining high," said Bruce Bittles,
chief investment strategist at Robert W. Baird & Co in
Nashville.
MSCI's all-country world stock index <.MIWD00000PUS> rose
0.77 percent. The pan-European FTSEurofirst <> index of
top shares rose 0.5 percent to 1091 points.
The dollar gained against the euro and yen on Monday after
Institute of Supply Management said its index of U.S. factory
activity for last month rose to the highest since May.
The euro <EUR=> fell 0.37 percent against the dollar at
$1.3896. Against the Japanese yen, the dollar <JPY=> rose 0.24
percent at 80.58 from a previous session close of 80.390.
The U.S. dollar index <.DXY>, which measures the greenback
against major currencies, rose 0.15 percent to 77.386.
The dollar has come under pressure recently as markets
geared up for the Federal Reserve's meeting on Tuesday and
Wednesday, which is expected to end in a decision to stimulate
the economy via quantitative easing.
How much QE the Fed will do is a major uncertainty for
markets. A recent Reuters poll found most economists expect the
Fed to buy $80 to $100 billion in assets per month.
Also adding to uncertainty are U.S. elections on Tuesday.
Polls show control of the U.S. House of Representatives is
expected to pass into Republican hands.
U.S. stocks rose, helped by advances in commodities
companies. Separate data showed U.S. construction spending rose
in September, driven by a one-year high in investment in public
projects.
The Dow Jones industrial average <> was up 45.82
points, or 0.41 percent, at 11,164.31. The Standard & Poor's
500 Index <.SPX> was up 5.26 points, or 0.44 percent, at
1,188.52. The Nasdaq Composite Index <> was up 2.29
points, or 0.09 percent, at 2,509.70.
The data from China, the world's biggest consumer of metals
with a voracious appetite for oil, helped lift energy and
commodities prices, with more anticipated demand seen.
U.S. light sweet crude oil <CLc1> rose $2.11, or 2.59
percent, to $83.54 per barrel,
The Reuters/Jefferies CRB Index <.CRB>, a gauge of
commodities and energy prices, was up 0.84 percent.
But gold prices <XAU=> fell $5.70, or 0.42 percent, to
$1353.30. A stronger dollar usually weighs on gold since the
precious metal, which is priced in greenbacks, becomes less
attractive to non-U.S. purchasers.
Japan's Nikkei <> lost 0.52 percent, hurt by a weaker
dollar during its trading session, which makes the country's
exports less competitive.
U.S. Treasuries prices briefly turned negative on Monday
after stronger-than-expected data on manufacturing and
construction spending bolstered stocks and undermined the
safe-haven appeal of government debt.
After briefly trading lower, benchmark 10-year notes
<US10YT=RR> slipped 6/32 in price to yield 2.63 percent, while
the 30-year bond <US30YT=RR> was 17/32 lower to yield 4.02
percent.
(Additional reporting by Lucia Mutikani in Washington , Chris
Reese, Gertrude Chavez-Dreyfuss, Steve Johnson, Ed Krudy and
Angela Moon in New York and Harpreet Bhal, Maytaal Angel and
Rebekah Curtis in London; Writing by Walker Simon; Editing by
Kenneth Barry)
