GLOBAL MARKETS-Stocks rally on upbeat data, trade reassurances; dollar weakens

(Adds gold, oil settlement prices)
* U.S., European PMI data beat consensus
* White House assures U.S.-China trade deal still intact
* Stocks, oil, gold climb; dollar dips
* World FX rates in 2020 http://tmsnrt.rs/2egbfVh

By Stephen Culp
NEW YORK, June 23 (Reuters) - The dollar eased and global
equity markets surged on Tuesday after reassurances on the
U.S.-Sino trade deal and upbeat economic data from the United
States and Europe brightened the prospect of a swift economic
recovery.
The euro hit a one-week high as higher-risk currencies,
including the Australian dollar, rose after U.S. officials
reaffirmed the trade deal following remarks by White House trade
adviser Peter Navarro who said late Monday the pact was "over."
Beijing has actually stepped forward in a number of areas in
a constructive way, Larry Kudlow, the director of the national
economic council, told Fox Business Network. "The confirmation from the White House that the China trade
deal remains in place gave a lot of confidence to the market,"
said Tim Ghriskey, chief investment strategist at Inverness
Counsel in New York.
Also driving "risk-on" sentiment was data showing sales of
new U.S. single-family homes increased more than expected in May
and a slower-than-expected contraction of U.S. and European
business activity last month. IHS Markit's euro zone Flash Composite Purchasing Managers'
Index (PMI), seen as a good gauge of economic health, recovered
to 47.5 from May's 31.9, moving closer to the 50 mark separating
growth from contraction. In April it was a record low 13.6.
The U.S. PMI reading and other IHS Markit indicators were
better-than expected, driving European bourses to close more
than 1% higher, with Germany's DAX index .GDAXI topping 2%.
Wirecard WDIG.DE climbed 18.8% after the arrest of its former
chief executive on suspicion of falsifying accounts.
"The PMIs overseas were very strong and broad. There's a lot
of pent up demand, there's a lot of cash and cash equivalents
sloshing around looking for a home," Ghriskey said.
MSCI's gauge of stocks across the globe .MIWD00000PUS
gained 1.08% and its emerging market index rose 1.50%.
In Europe, the broad pan-regional STOXX 600 index .STOXX
closed up 1.3%. Wall Street also soared, with the Nasdaq setting
an all-time peak as it headed to a fresh closing high.
The Dow Jones Industrial Average .DJI rose 199.67 points,
or 0.77%, to 26,224.63. The S&P 500 .SPX gained 25.34 points,
or 0.81%, to 3,143.2 and the Nasdaq Composite .IXIC added
123.82 points, or 1.23%, to 10,180.29.
The weaker dollar, a sign of increased risk appetite, lifted
gold prices to their highest since October 2012 as investors
eyed central bank monetary stimulus aimed at bolstering the
recovery in the midst of still rising coronavirus cases.
"The tsunami of stimulus coming in from everywhere is not
only inflationary but also painting a weaker picture for the
economy and making gold look attractive," said Edward Meir,
analyst at ED&F Man Capital Markets.
The upbeat economic data and trade deal affirmation boosted
longer-term U.S. Treasury yields, while the closely watched
spread between 2- and 10-year yields, considered a barometer of
economic expectations, inched up to 53 basis points.
Benchmark 10-year notes US10YT=RR rose 0.6 basis points to
yield 0.7102%.
Safe-haven German 10-year bond yields rose 3 basis points to
-0.41%, moving further away from a near one-month low overnight
after the trade remarks shocked markets.
The dollar index .DXY fell 0.42%, with the euro EUR= up
0.49% to $1.1313. The Japanese yen JPY= strengthened 0.36%
versus the greenback at 106.51 per dollar.
Brent futures LCOcv1 settled down 45 cents at $42.63 a
barrel, while U.S. crude CLcv1 fell 36 cents to settle at
$40.37 a barrel.
U.S. gold futures GCv1 settled up 0.9% at $1,782 per
ounce.

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Global assets http://tmsnrt.rs/2jvdmXl
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
Global markets have recovered strongly https://tmsnrt.rs/2YqlVG9
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