GLOBAL MARKETS-Shares, euro climb on robust risk appetite as lockdowns ease

* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
* European shares rise on upbeat China data
* Dollar dips to 11-week low on improved risk appetite
* Copper at March highs on Chinese recovery hopes
* Reuters Live Markets blog on European and UK stock
markets:
LIVE/

By Herbert Lash
NEW YORK, June 3 (Reuters) - A gauge of global equity
markets rose and the euro gained against the dollar on
Wednesday, both for a seventh session, in signs of strong risk
appetite as easing lockdowns and hopes for more monetary
stimulus boosted investor confidence.
Investors shed safe-haven assets such as gold and government
debt on encouraging economic data from China and on optimism the
worst of the economic downturn stemming from the coronavirus
crisis is over.
Gold prices extended losses as MSCI's all-country world
index, a gauge of equity market performance in 49 countries,
rose to its highest since March 6, while Germany's benchmark
10-year Bund yield hit its highest since mid-April.
Copper hit its highest since March, buoyed by the prospect
of higher demand from top consumer China after its services
sector returned to growth in April for the first time since
January, a private survey showed. The dollar fell to an 11-week low against a basket of
currencies on Wednesday but strong equity gains set the tone of
investor optimism, as leading bourses in Paris and Frankfurt
rose more than 3% and the U.S. benchmark S&P 500 gained 1%.
Stocks are an important risk indicator that continue to
surprise on the upside and push investors who have been on the
sidelines into the market, Marvin Loh, senior global macro
strategist at State Street Global Markets in Boston.
"The fact that you got this broad-risk indicator that's
stable and in a lot of ways is defying a lot of the well-known
critics out there in terms of continuing to march higher is
pulling other people into the market," Loh said.
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 1.62% while the pan-European STOXX 600 index .STOXX
rose 2.29%.
The Dow Jones Industrial Average .DJI rose 420.02 points,
or 1.63%, to 26,162.67. The S&P 500 .SPX gained 37.49 points,
or 1.22%, to 3,118.31 and the Nasdaq Composite .IXIC added
68.91 points, or 0.72%, to 9,677.28.
A 5% jump in Boeing BA.N shares lifted Wall Street after
billionaire investor Daniel Loeb's Third Point said it took a
stake in the planemaker. Data showed signs of stabilization in the U.S. labor market
after the ADP National Employment Report said private employers
laid off another 2.76 million workers, or less than an expected
9 million job losses. Also supporting investor confidence was the Institute for
Supply Management's (ISM) reading, which showed U.S. services
industry activity pushed off an 11-year low in May. Euro zone businesses suffered another contraction in
activity in May. While there are signs the worst is over, it
could be months before there is a return to growth, a survey
showed. But broader economic optimism supported risk-sensitive
currencies and pushed down the dollar.
Oil futures retreated after earlier jumping above $40 a
barrel, the highest since March, as doubts emerged about the
timing and scale of a potential extension to the pact between
Organization of the Petroleum Exporting Countries and its allies
to cut crude supplies.
U.S. crude CLc1 recently was unchanged at $36.81 per
barrel and Brent LCOc1 was at $39.41, down 0.4% on the day.
The dollar index =USD fell 0.292%, with the euro EUR= up
0.54% to $1.1229. The Japanese yen JPY= weakened 0.17% versus
the greenback at 108.89 per dollar.
Spot gold fell 0.6% to around $1,717 per ounce XAU= .
Germany's ten-year government bond yield rose to its highest
since mid-April as the global risk-on mood saw demand for safer
debt decline, but then slipped back slightly to -0.399 by 1100
GMT DE10YT=RR .
The European Central Bank is expected to ramp up stimulative
bond purchases when it meets on Thursday. Benchmark 10-year notes US10YT=RR rose 8.6 basis points to
yield 0.7689%.

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