* Shares in Europe add to recent gains, Wall St set to open
higher
* UK, Chinese, Japanese markets closed for holidays
* Busy week for economic data with U.S. payrolls on Friday
* German yields hit highest since March 2020
* Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
By Tommy Wilkes
LONDON, May 3 (Reuters) - European shares gained on Monday
as investors bullish about the global economic recovery looked
ahead to a busy week for U.S. economic data that is expected to
underline the strength of the rebound.
With China, Japan and Britain closed for public holidays,
volumes were thin.
The Euro STOXX index .STOXXE rose 0.71%, while the German
DAX .GDAXI gained 0.61% and France's CAC 40 .FCHI 0.5%.
Wall Street futures were higher ESc1 , pointing to yet more
gains after stock markets notched up another round of record
highs last week.
The MSCI world equity index .MIWD00000PUS , which tracks
shares in 49 countries, was flat on the day and below record
highs, however, as losses in Asia offset the gains in Europe.
Underpinning investors' enthusiasm for riskier assets is the
sense that the global economy is about to boom as countries come
out of lockdowns and consumers and businesses unleash some of
their excess savings built up over the past year.
Investor optimism has been enhanced by a run of
forecast-beating corporate earnings during the past few weeks.
German retail sales data for March came in far better than
expected, underlining that a U.S.-led economic rebound is now
gaining traction elsewhere.
Recent business surveys have also pointed to soaring
confidence about the recovery, although some economists think
businesses may be getting ahead of themselves and influenced
more by the success and speed of COVID-19 vaccination rollouts.
"The data has been unrealistically strong in recent months -
while the underlying economy is performing very well,
manufacturing growth is not quite at the stratospheric levels
the surveys imply," said UBS economist Paul Donovan.
"Newsflow about the vaccination cycle may be more important
in dictating answers to sentiment surveys than actual economic
activity."
A busy week for U.S. economic data is expected to show
resounding strength, particularly for the ISM manufacturing
survey and April payrolls. Forecasts are that 978,000 jobs were
created in the month as consumers spent their stimulus money and
the economy opened up more.
Analysts at NatWest Markets, for instance, see U.S. payrolls
surging by 1.25 million in April with unemployment diving to
5.2%, from 6% in March.
GERMAN YIELDS RISE
Such gains could stir speculation of a tapering in asset
purchases by the Federal Reserve, though Chair Jerome Powell has
shown every sign of staying patient on policy.
Powell is due to speak later on Monday and will be followed
by a raft of Fed officials this week. Dallas Fed President
Robert Kaplan caused a stir on Friday by calling for beginning
the conversation about tapering. The 10-year Treasury yield ended last week with a rise of 6
basis points. On Monday the 10-year yield edged 1 basis point
higher to 1.64% US10YT=RR .
German benchmark yields rose to their highest since March
2020 as growing signs of a strong recovery in the euro zone
economy encourages more selling of safe-haven government debt,
while Italian yields reached their highest since September.
The German 10-year yield rose more than 3 basis points to
-0.162% DE10YT=RR .
"Recovery is picking up, vaccinations are accelerating,
reopening is nearing," said Arne Petimezas, analyst at AFS Group
in Amsterdam.
The rise in Germany yields accelerated last week when German
inflation advanced further above the European Central Bank's
target, and U.S. data showed economic growth speed up in the
first quarter.
In currency markets, the dollar index stood at 91.115
=USD , down 0.1% on the day but still off a two-month trough of
90.422. The dollar ended April with a loss of 2% and has been
pressured by the rapid expansion of the U.S. budget and trade
deficits.
The euro rose 0.3% to $1.2051 EUR= , having backtracked
from a nine-week peak of $1.2149 on Friday.
Cryptocurrency ether scaled a new record high beyond $3,000
ETH=BTSP as investors bet that it will be of ever greater use
in a decentralised future financial system. Its lightning rally
- now up 325% in 2021 - has eclipsed that of bigger rival
bitcoin. Oil prices ran into profit-taking, having ended last month
with gains of 6% to 8%, on concerns about demand in India as the
country battles a new wave of COVID-19. O/R
Oil prices later stabilised and Brent LCOc1 was little
changed at $66.75 a barrel, while U.S. crude CLc1 gained 18
cents to $63.79 per barrel.
Commodity prices, including oil, metals and many
agricultural products, have rallied hard in recent weeks as
investors wager on a wave of new demand as economies reopen.
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Emerging markets http://tmsnrt.rs/2ihRugV
Global asset performance http://tmsnrt.rs/2yaDPgn
Ethereum hits record high, quadruples in value in 2021 https://tmsnrt.rs/3398mwf
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