GLOBAL MARKETS-Stocks rally on quick economic revival hopes, oil slides

(Adds close of New York markets)
* Nasdaq hits record high on recovery hopes
* Oil falls 3% despite OPEC+ output cuts
* Dollar slips as risk sentiment improves
* Gold rebounds, eyes on Fed meeting

By Herbert Lash
NEW YORK, June 8 (Reuters) - Global equity markets surged on
Monday, with the Nasdaq hitting a record high on hopes of a
quick recovery from the coronavirus slump, while oil slid after
Saudi Arabia said new output cuts by producer nations would not
include extra cuts by three Gulf countries.
A surprisingly upbeat U.S. jobs report on Friday drove
recovery hopes, along with progress toward a European recovery
fund, more German fiscal spending and the European Central
Bank's decision last week to expand its emergency stimulus
program.
The Nasdaq closed at a record high, confirming a bull market
for the index that began on March 23 when stocks began to pull
out of a deep plunge after coronavirus fears threw the U.S.
economy into recession and sent markets spiraling downward.

The U.S. dollar slid and commodity currencies gained as risk
appetite ramped up. The New Zealand dollar rose to its highest
in nearly four months after the government said it had stopped
transmission of the coronavirus within the country.
The Nasdaq is the first of the Wall Street's three main
indexes to bounce back fully. Financial, automotive
and retail-oriented and energy shares - the stocks most
beaten-down since the pandemic slammed markets - have been
leading equity indices higher recently.
"The majority of investors believe the road to recovery is
here," said Edward Moya, senior market analyst at currency
dealer OANDA in New York. "We're possibly seeing some signs of a
much quicker recovery than anyone anticipated. That's helping
push the stock market."
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 0.95%, while the pan-European STOXX 600 index .STOXX
closed down 0.32% after posting its strongest weekly gain in
more than eight years on Friday. Jefferies said in a note that
the German market .GDAXI , which fell 0.22%, "has become a tad
overbought."

The S&P 500 ended in positive territory for the year to
date.
The Dow Jones Industrial Average .DJI rose 461.46 points,
or 1.7%, to 27,572.44. The S&P 500 .SPX gained 38.46 points,
or 1.20%, to 3,232.39 and the Nasdaq Composite .IXIC added
110.66 points, or 1.13%, to 9,924.75.
Yields on top-rated German government bonds dipped but
remained near more than two-month highs hit last week on the
back of improving sentiment in world markets.
U.S. Treasury yields also fell, with the 10-year note
US10YT=RR down 3.3 basis points at 0.8718%.
Gold rose after a steep decline, boosted by hopes of a
dovish monetary policy outlook from the Federal Reserve after
the U.S. central bank ends a two-day meeting on Wednesday.
Investors will be seeking clarity from Fed Chair Jerome
Powell on monetary and fiscal policies, Moya said.
U.S. gold futures GCv1 settled up 1.3% at $1,705.1 an
ounce.
Oil fell after the Organization of the Petroleum Exporting
Countries and others agreed on Saturday to sustain cuts agreed
to in April that were equal to about 10% of global oil supply.
But Saudi Energy Minister Prince Abdulaziz bin Salman said
on Monday that the kingdom and Gulf allies Kuwait and the United
Arab Emirates would not cut an extra 1.18 million bpd in July as
they are doing this month, leading prices to tumble.
U.S. crude CLc1 fell $1.36 a barrel to settle at $38.19 a
barrel, while Brent LCOc1 settled down $1.50 at $40.80 a
barrel.
Asia shares rose in a catch-up rally following Friday's U.S.
jobs data but gains were capped by Chinese data, published on
Sunday, that showed exports contracted in May. German industrial output slumped a record 17.9% in April and
firms now expect a bumpy road ahead despite a massive stimulus
package. Marija Vertimane, senior strategist at State Street Global
Markets, said European shares came under pressure following the
weak Chinese data, but "we do not think this marks the end of
the rally."
The Japanese yen strengthened 1.12% versus the greenback at
108.39 per dollar, while the euro EUR= was up 0.06% to
$1.1291.
The dollar index =USD fell 0.054%.

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World stock valuations https://tmsnrt.rs/2XIH51C
Fed Balance Sheet versus VIX https://tmsnrt.rs/37aQ9iZ
US yield curve steepens https://tmsnrt.rs/2ASzEfi
GRAPHIC-World FX rates http://tmsnrt.rs/2egbfVh
GRAPHIC-MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
GRAPHIC-Emerging markets http://tmsnrt.rs/2ihRugV
GRAPHIC-Global assets in 2020 http://tmsnrt.rs/2jvdmXl
Nasdaq vs S&P 500 https://tmsnrt.rs/37cA1xo
Wall St vs Main St https://tmsnrt.rs/2MHEtek
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