* Stocks rally to 4th week of gains on economic data
* Dollar falls broadly, German Ifo data helps lift euro
* Oil rises to $76 on quantitative easing expectations
* Bonds fall on news of strong U.S. business spending
(Updates with close of European markets)
By Herbert Lash
NEW YORK, Sept 24 (Reuters) - Global stocks jumped but the
dollar slid on Friday as economic data both raised hopes the
recovery is improving and bolstered speculation the Federal
Reserve will boost money supply to aid a struggling economy.
U.S. stocks advanced in a broad rally that lifted Wall
Street to a fourth consecutive week of gains. The benchmark
Standard & Poor's 500 Index is now up 9.5 percent so far in
September. For details see: []
U.S. oil futures prices climbed above $76 a barrel and gold
hit all-time highs above $1,300 an ounce as expectations
mounted that the Fed will again pump billions of dollars into
the economy to spur growth.
While data on U.S. durable goods orders and home sales were
soft, stock traders latched on to a rise in business spending
in August as the latest sign the recovery is on firmer ground.
[]
Wall Street gained 2 percent and MSCI's all-country world
equity index .<MIWD00000PUS> rose 1.6 percent. Emerging markets
lagged, rising 0.7 percent, according to MSCI <.MSCIEF>.
U.S. Treasury debt and German Bund futures fell in volatile
trading as the U.S. data supported a shift out of government
bonds and into riskier assets.
Bonds have either gotten expensive or are not providing
much of a return, said Jason Pride, director of investment
strategy at Glenmede Investment and Wealth Management in
Philadelphia, which oversees about $18 billion in assets.
"You're finally in a place now that it's not because the
equity equation is so attractive that you do something, it's
actually because the safe side of the equation is so
unattractive that you do something," Pride said.
The Dow Jones industrial average <> closed up 197.84
points, or 1.86 percent, at 10,860.26. The Standard & Poor's
500 Index <.SPX> gained 23.84 points, or 2.12 percent, at
1,148.67. The Nasdaq Composite Index <> rose 54.14 points,
or 2.33 percent, at 2,381.22.
The dollar tumbled against a basket of currencies <.DXY> to
a low last seen in February on a stronger-than-expected rise in
the German Ifo business climate index for September to its
highest level in more than three years. []
The euro <EUR=> was up 1.34 percent at $1.3489.
Expectations of further dollar weakness underpinned gold,
as did inflation jitters on the prospect of another
quantitative easing program by the Fed. []
U.S. gold futures for December delivery <GCZ0> hit a record
$1,301.60 an ounce, and settled up $1.80 at $1,298.10.
"The U.S. Fed is obviously contemplating, and the market is
expecting, some kind of statement on quantitative easing," said
Deutsche Bank analyst Daniel Brebner. "The influx of new money
in the system raises longer-term expectations for inflationary
forces."
News of revived business spending drew investors away from
safe-haven government debt after a week-long bond rally. U.S.
traders cited talk of a very large asset allocation trade from
bonds to equities. []
The benchmark 10-year U.S. Treasury note <US10YT=RR> fell
16/32, its yield rising to 2.61 percent.
U.S. crude oil futures rose sharply, helped by a sliding
dollar and expectations the Fed would pump money into the
economy. []
U.S. crude for November <CLc1> delivery rose $1.31, or 1.74
percent, to settle at $76.49 a barrel.
ICE Brent November crude <LCOc1> rose 76 cents to settle at
$78.87 a barrel.
The U.S. Dollar Index <.DXY> was down 0.90 percent at
79.289, against the Japanese yen, the dollar <JPY=> was down
0.12 percent at 84.25.
Earlier in Asia, Japan's Nikkei share average <>
dropped 1 percent to end at 9,471.67 after initially climbing
on the yen intervention talk. The MSCI index for Asia ex-Japan
stocks <.MIAPJ0000PUS> was up 0.5 percent.
(Reporting by Ryan Vlastelica, Robert Gibbons, Steven C.
Johnson, Emily Flitter and Frank Tang in New York; Writing by
Herbert Lash; Editing by Andrew Hay)
