* World stocks rise on healthy Chinese data
* News China May exports up 50 pct helps risk appetite
* Euro stable vs dollar; ECB policy meeting in view
By Manuela Badawy and Emelia Sithole-Matarise
NEW YORK/LONDON, June 9 (Reuters) - World stocks rose on
Wednesday as news of strong Chinese exports eased concerns
about the global economic recovery, while the euro rose from
multi-year lows.
Oil prices rose above $73 a barrel after Reuters reported
that Chinese exports grew 50 percent in May from a year
earlier, well above forecasts for a 32 percent rise, in a sign
that demand in the world's second largest economy was strong.
The official data is scheduled to be reported on Thursday.
[]
"The growth in China has been a concern. The Chinese
government has been slowing the economy to avoid a bubble in
the housing market in particular and the general economy," said
Tim Ghriskey, chief investment officer of Solaris Asset
Management in Bedford Hills, New York.
"This is certainly an indication the Chinese economy
remains strong and can help power the economic recovery in the
rest of the world.
In the U.S., Federal Reserve chairman Ben Bernanke said the
U.S. economic recovery appeared to be on a solid footing but
cautioned it could take years before the labor market recovered
from job the deep 2008 recession.
The Dow Jones industrial average <> was up 47.77
points, or 0.48 percent, at 9,987.75. The Standard & Poor's 500
Index <.SPX> was up 6.44 points, or 0.61 percent, at 1,068.44.
The Nasdaq Composite Index <> was up 16.71 points, or 0.77
percent, at 2,187.28.
The pan-European FTSEurofirst 300 <> was up 1.2
percent, ending three sessions of falls while the MSCI's
all-country world stock index <.MIWD00000PUS> rose 0.87 percent
propped up by gains in European and Asian equity markets, yet
worries remained about the strength of the world economy.
"After three days down you get some relief and markets
pause, but the well known problems around the debt crisis are
still there and there's no relief from that," said Bernard
McAlinden, investment strategist at NCB Stockbrokers in
Dublin.
"Markets want to see where the end-game for this crisis is
and the implication for the European banking system. They want
to see policy action that's more final and definitive than
we've seen so far," he said.
Options demand helped the euro <EUR=> rise against the U.S.
dollar 0.57 percent to $1.204, but pressure continued after
falling below $1.19 on Monday, its weakest since 2006.
Few were ready to declare the currency's woes over, though.
Banks' overnight deposits at the European Central Bank hit a
record on Wednesday, highlighting widespread worries about the
health of the financial system. []
"Euro selling got a little bit tired today, and it seems
people are taking a pause," said Matthew Strauss, senior
strategist at RBC Capital Markets in Toronto. "But underlying
anxiety is still there, and the market will be quick to turn on
the euro if there are any negative developments."
An international banking source told Reuters on Wednesday
the European interbank market was not lending to smaller
Spanish banks, partly due to concerns the country could be
heading for a debt crisis along the lines of EU partner Greece.
Market access might ease if Spain's government announces
further austerity measures, the source said. []
Investors were also awaiting a European Central Bank
meeting on Thursday to see if it will announce fresh steps to
ease strains from the euro zone's debt crisis. []
The ECB is also expected to publish a new set of economic
forecasts for the region which are likely to signal somewhat
stronger activity, despite worries that debt problems and
government austerity measures will sharply brake growth.
U.S. Treasuries fell slightly as traders prepared for the
second installment of of this week's $70 billion worth of bond
auctions.
After Tuesday's well-received offering of three-year debt,
the U.S. Treasury will sell $21 billion worth of 10-year notes
at 1 p.m. (1700 GMT). Dealers usually sell ahead of offerings
to clear room on balance sheets and make prices more attractive
at auction.
The benchmark 10-year U.S. Treasury note <US10YT=RR> was
down 9/32, with the yield at 3.2203 percent. The 2-year U.S.
Treasury note <US2YT=RR> was down 1/32, with the yield at 0.762
percent. The 30-year U.S. Treasury bond <US30YT=RR> was down
12/32, with the yield at 4.136 percent.
Risk-averse investors have streamed into gold, sending
prices for the precious metal to a record high in U.S. dollars,
on persistent fears that the euro zone debt problems will
spread.
(Additional reporting by Steven C. Johnson, Chuck Mikolajczak
and Burton Frierson in New York)
