GLOBAL MARKETS-Global stocks eye new high on growth hopes, oil ebbs on COVID-19 fears

(Adds quote, updates prices throughout)
* MSCI World up 0.2%, near record high
* Japan leads Asia gains overnight
* Oil dips as India, Japan COVID-19 cases rise
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
* Reuters COVID-19 Tracker: https://graphics.reuters.com/world-coronavirus-tracker-and-maps/vaccination-rollout-and-access/

By Simon Jessop
LONDON, April 22 (Reuters) - Global stocks ground higher
while oil ebbed on Thursday as investors diverged over whether
to bet on economic recovery in the United States and other
developed markets or worry about a surge in COVID-19 cases in
India and elsewhere.
With vaccination rates rising and pandemic-weary citizens
embracing more freedoms to drive growth in some major economies,
MSCI's broadest global gauge of stocks .MIWD00000PUS was up
0.3%, trading within 1% of its all-time closing high after a
recent mini sell-off.
"The summer earnings season will further test the trajectory
of the recovery, but until then, vaccines rollout and economic
reopening will be the main triggers for a further upside leg in
this bull run," Amundi Chief Investment Officer Pascal Blanque
said in a note to clients.
With the European Central Bank holding a policy meeting,
Europe's top indexes posted stronger gains. The broad STOXX
Europe 600 .STOXX was up 0.5%, also bolstered by upbeat
earnings from Nestle NESN.S and Volvo VOLVb.ST .
"Markets are currently a tale of three Vs - standing at a
crossroads of virus evolution, vaccination rates and v-shaped
recoveries," Societe General cross-asset strategist
Alain Bokobza wrote in a note to clients.
"Our overall stance is unchanged, i.e., no exuberance yet.
Credit risk remains under control, so risk assets should
continue to ride high... Stick to risk for now."
The buoyant start to the European day followed overnight
gains in Asia, where Japan's Nikkei 225 .N225 rose 2.4% and
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 0.3%.
U.S. stock futures ESc1 NQc1 pointed to a marginally
lower open on Wall Street, down 0.1% albeit within touching
distance of a record high.
Despite stocks being generally upbeat, oil - another asset
geared to perceptions of economic growth - fell after a
resurgence of COVID-19 cases in India and Japan, and a recent
surprise stock build in the United States, weighed on sentiment.
U.S. crude CLc1 futures were down 0.5% at $61.04 per
barrel while European benchmark Brent LCOc1 was down 0.6% at
$64.95.
"An unexpected and high increase in U.S. inventories fuelled
concerns over weak demand which came against expectations for a
strong recovery in demand," said Satoru Yoshida, a commodity
analyst with Rakuten Securities.
"What is hurting market sentiment is also the fact that the
COVID-19 pandemic is spreading again at a fast pace in India and
Japan."
U.S. Treasury yields stayed depressed but moved off
intra-day lows, with the yield on benchmark 10-year notes
US10YT=RR at 1.5644% on Thursday.
Germany's 10-year government bond yield DE10YT=RR , the
benchmark of the euro area also dipped and was last trading flat
at -0.26%.
In currency markets, the dollar =USD last traded flat
against a basket of major peers.
The euro EUR=D3 was up 0.1% at $1.205, not far from its
strongest since March 3. The common currency has gained as much
as 3% against the dollar since the start of April.
While the euro is expected to be little moved by the ECB
meeting, with no change expected, traders will be looking out
for positive words about the state of the economy and any hints
that its bond purchases could be tapered.
"The European Central Bank isn't expected to ruffle any
feathers this Thursday, with analysts predicting that it will be
another steady session from Christine Lagarde and Co," said
Connor Campbell, financial analyst at Spreadex.
"But with a while until the next meeting – the central bank
skips May – the ECB could use this opportunity to sharpen its
forward guidance. There are also hawks lurking among the doves,
meaning the get-together may not go as smoothly as forecast."
U.S. Federal Reserve and Bank of Japan meetings follow next
week.
Against that backdrop, spot gold XAU= pulled back from its
near-two-month high to trade down 0.5% at $1,785.3 an ounce.

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