GLOBAL MARKETS-Stocks rebound passes 10% after $2 trln U.S. stimulus boost

* MSCI ACWI builds on biggest gains since 2008 financial
crisis
* Gold retain gains after big jump
* Dollar slides as funding squeeze eases a little
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

By Marc Jones
LONDON, March 25 (Reuters) - A rebound in world stocks
reached a lofty 11% on Wednesday and commodities made gains too,
as coronavirus-battered markets leapt on news of a $2 trillion
U.S. fiscal stimulus package.
Hopes the economic devastation of the global outbreak could
be alleviated gave world equity indexes .MIWD00000PUS their
first back-to-back gains in a month as volatility gauges eased
away from full-blown crisis levels.
Europe's main markets in London, Frankfurt and Paris all
opened 4%-5% higher after the Nikkei in Tokyo had risen almost
7% following some historic moves on Wall Street the previous
day. .EU .T .N
The Dow Jones Industrial Average .DJI had soared over 11%
in its biggest one-day percentage gain since 1933 and the S&P
500 scored a 9.4% jump - its tenth best day on record out of
24,067 trading sessions since daily data started in 1927.
"The right steps have been taken but the main thing that is
driving the market at the moment is sentiment," said Chris Dyer,
Director of Global Equity at fund manager Eaton Vance.
He said it was now vital to see some positive signs on the
virus itself and that health systems were not being overwhelmed.
"Market direction can change very, very quickly depending on one
item of news or one development," he added.
The U.S. stimulus deal, billed as a $2 trillion package, is
expected to include $500 billion in direct payments to people
and $500 billion in liquidity assistance. U.S. President Donald Trump had also pressed his case for a
re-opening of the U.S. economy by mid-April, though that had met
immediate scepticism given the rise of infections in the United
States is now among the highest in the world.
In particular, its financial hub of New York City suffered
another big increase in the number of infections, fuelling
worries about a shortage of hospital beds. DE-STRESS
In the currency markets, the dollar slipped for a third
straight session as the scramble for liquidity was soothed again
by the super-sized U.S. stimulus plan.
The risk-sensitive Australian dollar AUD=D3 jumped over
the 60-cent mark for the first time in a week and euro traded up
0.4% up past $1.0835 EUR= in a fourth straight day of gains.
With traders moving gradually away from safety bolt holes,
the Japanese yen eased to 111.34 yen per dollar JPY= to leave
it just off a one-month low.
Bond markets were also calmer. Benchmark U.S. Treasuries
were yielding 0.86% while in Europe Germany's 10-year yield
DE10YT=RR edged a basis point higher to -0.31%, tailed by
other higher-rated government debt. NL10YT=RR , AT10YT=RR
In Italy which remains the epicentre for the virus in
Europe, Rome's 10-year borrowing costs were unchanged at 1.59%;
nearly half last week's high of 3.01% IT10YT=RR .
In metals markets, gold changed hands at $1,610.0 per ounce
XAU= , retaining its gains of almost 5% on Tuesday, its biggest
jump since 2008.
Oil prices bounced another 2% as hopes for U.S. stimulus
also boosted hopes for global demand. O/R
Brent crude futures LCOc1 rose to $27.51 per barrel. That
is up about $5, or about 13%, from their 18-year intraday low on
Friday. Still on the month, the market is down 45%.