GLOBAL MARKETS-U.S. stocks, crude advance as stimulus talks, Trump's improving health boost risk appetite

* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

(Updates to afternoon)
By Stephen Culp
NEW YORK, Oct 5 (Reuters) - Growing risk appetite helped
push U.S. stocks and crude prices higher on Monday as renewed
optimism surrounding stimulus negotiations and news of President
Donald Trump's health progress helped calm investor anxiety.
U.S. House Speaker Nancy Pelosi and Treasury Secretary
Steven Mnuchin continued talks aimed at arriving at a bipartisan
agreement on a new pandemic relief package. That revived hopes
that a new round of stimulus could be in the offing more than
two months after emergency unemployment benefits expired for
millions of Americans. "As long as we hear negotiations are continuing Mnuchin and
Pelosi trying to narrow their conditions, the market will think
they are making progress and something will happen soon," said
Paul Nolte, portfolio manager at Kingsview Asset Management in
Chicago.
While the severity of Trump's condition remained unclear, he
took a brief ride in a presidential motorcade to wave to his
supporters, as his doctors painted a rosy picture of the
president's health and White House Chief of Staff Mark Meadows
expressed optimism Trump would soon be discharged. In a tweet, Trump announced he expects to be discharged from
the hospital early on Monday evening.
"As chaotic as this election has been, a healthy incumbent
means someone will be at the helm the next few weeks," Nolte
added.
Democratic contender Joe Biden opened his widest lead in a
month in the U.S. presidential race, according to a
Reuters/Ipsos poll released on Sunday.
The Dow Jones Industrial Average .DJI rose 364.58 points,
or 1.32%, to 28,047.39, the S&P 500 .SPX gained 46.69 points,
or 1.39%, to 3,395.13 and the Nasdaq Composite .IXIC added
193.83 points, or 1.75%, to 11,268.84.
Positive health updates regarding Trump and a flurry of
dealmaking activity helped European shares close at a two-week
high. The pan-European STOXX 600 index .STOXX rose 0.81% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
1.36%.
Crude prices surged on waning uncertainties, and were
further supported by an escalating oil workers strike in Norway,
where six offshore oil and gas fields were shut down.
U.S. crude CLcv1 futures settled at $39.22 per barrel, a
5.86% gain. Brent crude advanced 5.14% to settle at $41.29 per
barrel.
The safe-haven dollar dipped and riskier currencies
outperformed on mounting stimulus optimism. The dollar index .DXY fell 0.34%, with the euro EUR= up
0.49% to $1.1773.
The Japanese yen weakened 0.39% versus the greenback at
105.75 per dollar, while sterling GBP= was last trading at
$1.2973, up 0.32% on the day.
Risk-on sentiment also pushed longer-term U.S. Treasury
yields to five-year highs and steepened the yield curve.
Benchmark 10-year notes US10YT=RR last fell 19/32 in price
to yield 0.7552%, from 0.694% late on Friday.
The 30-year bond US30YT=RR last fell 58/32 in price to
yield 1.5568%, from 1.48% late on Friday.
Gold inched higher as the dollar slipped, despite gains in
equities markets. Spot gold XAU= added 0.8% to $1,913.78 an ounce.