* Global stocks hit 15-month high for 6th day
* Risk appetite up; volatility index hit 16-month low
* Dollar slips on Friday's U.S. jobs data, Fed comment
By Atul Prakash
LONDON, Jan 11 (Reuters) - World equities hit a 15-month
peak for a sixth straight session on Monday, with robust Chinese
trade data boosting optimism about the global economy, but
Friday's disappointing U.S. jobs figures continued to hurt the
dollar.
A weaker U.S. currency, cold weather in the United States
and Europe and concerns over gasoline supplies following a fire
at Korea National Oil Corp's Newfoundland refinery in Canada
helped oil <CLc1> to jump 1 percent to trade above $83 a barrel.
Stronger-than-expected Chinese export and import data and a
weaker dollar also boosted commodities, with gold <XAU=> rising
to its highest in more than a month, copper <MCU3=LX> gaining
1.9 percent and aluminium <MAL3=LX> advancing 1.8 percent.
China's exports leapt 17.7 percent from a year earlier,
dwarfing the 4.0 percent rise forecast by economists and
breaking a 13-month streak of year-on-year declines. Imports
surged 55.9 percent, much more than the 31 percent increase
markets had expected. []
"Chinese exports and imports were strong, boosting
expectations for global economic activity," said Bernard
McAlinden, investment strategist at NCB Stockbrokers.
"We're still in a cyclical bull market, though we're coming
out of the rapid gains phase," he added.
Global equities measured in the MSCI All-Country World Index
<.MIWD00000PUS> rose 0.9 percent to 309.97 points after rising
to 310.03, the highest since late September of 2008. The
FTSEurofirst 300 <> of top European shares hit a 15-month
peak, boosted by financial and energy stocks.
Investor appetite for risky assets such as equities grew,
with the VDAX-NEW volatility index <.V1XI> falling 2 percent to
a 16-month low. The lower the index, which is based on sell and
buy options on Frankfurt's top-30 stocks <0#.GDAXI>, the higher
the market's desire to take risk.
Investors also braced for quarterly results from aluminium
major Alcoa <AA.N>, due to kick off the U.S. earnings season on
Monday.
CDS INDEXES TIGHTEN, DOLLAR DIPS
European credit default swap indexes tightened and Euro zone
government bond yields rose as the robust Chinese trade data
boosted sentiment for riskier assets.
The investment-grade Markit iTraxx Europe index <ITEEU5Y=GF>
was at 66 basis points, according to data from Markit. That is
1.25 basis points tighter than late on Friday, according to data
from BGC Partners.
The dollar broadly fell after weak U.S. jobs data in the
previous session and comments from a Federal Reserve official
that U.S. interest rates are likely to stay low for some time.
The U.S. currency was down 0.7 percent against a basket of
major currencies <.DXY>.
Data on Friday showed U.S. employers cut 85,000 jobs last
month, disappointing many in the market who had expected the
U.S. economy to stop losing jobs and offsetting news that
revised November payrolls showed the economy added 4,000 jobs.
[].
The dollar extended falls on Monday after St. Louis Federal
Reserve Bank President James Bullard said rates may remain low
for some time, although he said Fed policy was unlikely to be
pushed off course by December's weak jobs data. []
"Expectations of the speed and scale of Fed tightening
received a set-back from the weak payrolls numbers," said Chris
Turner, head of currency strategy at ING in London.
"At the same time the global recovery story has received a
shot in the arm with the quick rebound in Chinese exports. The
Fed in no hurry to tighten, Asia is leading the global recovery
so the dollar is weaker across the board".
The Swiss franc turned lower against the euro after Swiss
National Bank chairman Philipp Hildebrand said the central bank
will continue to fight any excessive appreciation of the Swiss
franc against the euro. []
Japanese markets were closed for the Coming of Age Day.
(Additional reporting by Brian Gorman, Jessica Mortimer, George
Matlock and Jane Baird in London; Editing by Toby Chopra)
