* Chinese export data for May above expectations -sources
* Bernanke says economic recovery appears on solid footing
* Oil rises above $74 a barrel on rising risk appetite
* Euro gains against U.S. dollar on profit-taking
By Manuela Badawy
NEW YORK, June 9 (Reuters) - World stocks jumped about 1
percent and oil prices surged on Wednesday as comments by
Federal Reserve Chairman Ben Bernanke and unofficial data on
Chinese exports raised hopes that a global economic recovery is
on sure footing.
The euro rose from multi-year lows for a second straight
day, boosted by renewed optimism that Europe's debt crisis will
not put the brakes on global growth, and as traders continued
to book profits following the currency's slide.
The keener appetite for risk drove crude oil prices up 4
percent above $74 a barrel, as U.S. data that showed a hefty
drawdown in crude oil inventories added to the picture of
rising demand.
Chinese exports grew 50 percent in May from a year earlier,
according to sources, well above expectations for growth of 32
percent. The unofficial data was seen as a sign that the
economy of the world's second-largest oil user was roaring
ahead. China is to report the official export data on Thursday
as part of broader trade data. []
Bernanke, in testimony to the U.S. House of Representatives
Budget Committee, said the economic recovery appeared to be on
solid footing and that while a double-dip recession "can never
be entirely ruled out," he expects the economy to continue
growing. []
"Bernanke is more positive about the economy than the
consensus is, at a time when some people are starting to
question whether we could get a double dip," said Carl
Birkelbach, chairman of Birkelbach Investment Securities in
Chicago.
The three major U.S. stock indexes all rose more than 1
percent, and European shares snapped a three-day losing streak
to close up 1.85 percent.
The Dow Jones industrial average <> was up 108.68
points, or 1.09 percent, at 10,048.66. The Standard & Poor's
500 Index <.SPX> was up 12.74 points, or 1.20 percent, at
1,074.74. The Nasdaq Composite Index <> was up 29.53
points, or 1.36 percent, at 2,200.10.
Tech lifted the Nasdaq after Texas Instruments Inc <TXN.N>
said second-quarter earnings and revenue would be at the high
end of its forecast on strong broad-based demand, particularly
from industrial customers. []
The stock gained 1.7 percent to $24.28 while the PHLX
Semiconductor index <.SOXX> rose 2.2 percent.
The MSCI's all-country world stock index <.MIWD00000PUS>
rose 1.3 percent.
The pan-European FTSEurofirst 300 <> index closed up
18.09 points at 998.44 points.
"It's a relief rally. I think we're due a technical
recovery," said Giuseppe-Guido Amato, strategist at Lang &
Schwarz.
"Whether it's a one-day wonder we don't know. The only sure
thing is high volatility. Q1 earnings were good, and Q2 may be
good, but macro trumps micro now. The acceleration of the
recovery is fading. There is a chance of a double dip."
The China data, as well as a weaker dollar, helped oil and
and metal prices gain, boosting commodity shares. Among gainers
were miners Anglo American <AAL.L>, BHP Billiton <BLT.L>,
Fresnillo <FRES.L>, Rio Tinto <RIO.L> and Xstrata <XTA.L> and
energy shares Total <TOTF.PA>, Repsol <REP.MC> and StatoilHydro
<STL.OL> .
BP <BP.L>, however, fell 4.3 percent to its lowest close
since since October 2008 as traders cited concern over its
dividend payment. The company is coming under increasing
pressure from U.S. politicians following an oil spill in the
Gulf of Mexico.
BP is down more than 40 percent from a mid- April peak,
wiping about 50 billion pounds ($72 billion) off its market
capitalization.
The euro rose against the dollar for a second straight
session, boosted by options-related demand and renewed market
hopes that Europe's debt crisis may not put the brakes on
global growth.
The euro <EUR=> was up 0.57 percent at $1.204, after
falling below $1.19 on Monday, its weakest since 2006. The euro
has shed nearly 16 percent against the dollar so far this
year.
Few were ready, however, to declare the currency's woes
over. Banks' overnight deposits at the European Central Bank
hit a record on Wednesday, highlighting widespread worries
about the health of the financial system. []
Steven Butler, head of FX trading at Scotia Capital, said
that while the euro in the short term could reach $1.2110, "I
still think there's downside."
"And overall, this move over the past few months has seen
new lows hit, then consolidation and a nasty bounce back before
we make another assault downward," he added.
Traders said option expiries at $1.1900 and $1.1850 added
to euro demand as investors bought the currency to protect
their positions.
Investors were also awaiting a European Central Bank policy
meeting on Thursday to see if the ECB 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 that 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 before the second installment
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 13/32, with the yield at 3.2367 percent. The 2-year U.S.
Treasury note <US2YT=RR> was down 2/32, with the yield at 0.766
percent. The 30-year U.S. Treasury bond <US30YT=RR> was down
29/32, with the yield at 4.1655 percent.
Crude oil <CLc1> rose $2.69, or 3.74 percent, to $74.68 per
barrel.
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, Ryan Vlastelica
and Burton Frierson in New York and Brian Gorman in London)
