GLOBAL MARKETS-'Relief rally' pushes global equity mkts higher; bonds flat

* MSCI world index jumps nearly 1.6%
* Dollar falls from two-month highs
* U.S. Treasury yields hover near 0.66%

By David Randall
NEW YORK, Sept 28 (Reuters) - Global equity markets surged
and the dollar fell from two-month highs Monday as investors
moved into the shares of beaten-down sectors on the heels of a
sharp stock market sell-off the week before.
Asian shares gained, with Chinese shares boosted by data
over the weekend showing China's industrial firms grew for the
fourth consecutive month in August. "We're seeing a bit of a relief rally," said Jonathan Bell,
chief investment officer at Stanhope Capital. "Things got
oversold perhaps a little bit in the short term."
"We saw quite a lot of exuberance in July and August, with
prices particularly of tech stocks rising and that then has come
off a little bit recently," he said.
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 1.58% following broad gains in Asia and Europe. The STOXX
600's banking stock index was up 4.4%, after hitting a fresh
all-time low on Friday .SX7P .
In morning trading on Wall Street, the Dow Jones Industrial
Average .DJI rose 422.7 points, or 1.56%, to 27,596.66; the
S&P 500 .SPX gained 47.91 points, or 1.45%, to 3,346.37; and
the Nasdaq Composite .IXIC added 163.85 points, or 1.5%, to
11,077.41.
Currency markets indicated increased risk appetite, as the
riskier Australian dollar AUD=D3 , New Zealand dollar NZD=D3 ,
Swedish crown SEK=D3 and Norwegian crown NOK=D3 were all up
against the U.S. dollar, recouping some losses from the previous
week. The dollar index fell, erasing some of last week's gains,
down 0.4% on the day at 94.157 at 7:54 a.m. EDT (1154 GMT)
=USD .
Investors remain broadly cautious in light of rising new
COVID-19 infections in Europe, which pose the risk of further
restrictions on activity. Benchmark 10-year notes US10YT=RR last fell 1/32 in price
to yield 0.661%, from 0.659% late on Friday.
Oil prices were mixed as an increasing number of virus cases
damaged hopes for a smooth recovery in fuel demand, with the
main crude benchmarks on track for their first monthly falls
since April. U.S. crude CLc1 recently fell 0.05% to $40.23 per barrel
and Brent LCOc1 was at $42.20, up 0.67% on the day.

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Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
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