* World stocks hit 15-month high first day of 2010
* Safe-haven dollar, bonds slip
* Energy, commodities rise on dollar weakness
(Updates with U.S. markets, changes byline, dateline, previous
LONDON)
By Manuela Badawy
NEW YORK, Jan 4 (Reuters) - World stocks kicked off the new
year hitting a 15-month high on Monday on optimism the global
economic recovery is underway, while the U.S. dollar slid on
profit taking ahead of a U.S. jobs report this week that could
guide the currency's move for weeks ahead.
The weak dollar pushed energy and commodity prices higher
while safe-haven U.S. Treasury yields eased from near
seven-month highs.
The MSCI's all-country world stock index <.MIWD00000PUS>
was up 1.54 percent, a level not seen since October 2008 just
after U.S. investment bank Lehman Brothers collapsed to trigger
financial turmoil.
Investors got an early boost with U.S. manufacturing sector
data showing growth for a fifth straight month in December, its
best showing since early 2006, adding to hopes of a more robust
U.S. recovery in 2010. []
"This is what we need in 2010 for a V-shaped recovery,"
said Alan Lancz, President at Alan B. Lancz & Associates Inc,
in Toledo, Ohio.
"Looks like we're off to a fresh start for the year and the
economy continues to roll along. I think this could be part of
a trend with stimulus and a more positive outlook. Until we see
interest rates moving up, we're pretty positive that the
numbers will continue to move up."
The Dow Jones industrial average <> was up 1.54
percent, at 10,588.42. The Standard & Poor's 500 Index <.SPX>
was up 1.61 percent, at 1,133.07 and the Nasdaq Composite Index
<> was up 1.78 percent, at 2,309.43.
The U.S. dollar slid as investors hesitated to push it
higher against its peers ahead of Friday's U.S. non-farm
payrolls report. Payrolls have been in uninterrupted decline
since January 2008.
Market players will want to see an improvement to the high
unemployment that has battered consumer confidence and spending
in the United States. Consumer spending is the backbone of the
U.S. economy, accounting for two-thirds of its activity.
Most economists think economic growth strengthened in the
fourth quarter, which means companies that cut to the bone to
survive the deep recession will need to start bringing back
workers to meet renewed demand.
"Investors are squaring positions ahead of some key
numbers." said Omer Esiner, senior market analyst at Travelex
Global Business Payments in Washington.
"Obviously, the jobs number will headline this week's data
but we do have some numbers that will either confirm that a
U.S. recovery is gaining traction or could dampen some of the
recent enthusiasm that the dollar enjoyed."
The single European currency recovered to trade at $1.4416
after earlier falls, which took it as low as $1.4258 and
testing December's low around $1.4218.
A euro zone purchasing managers' survey, which confirmed
the region's manufacturing sector expanded at its fastest rate
in 21 months in December [], also helped the euro
against the dollar.
The dollar was down against a basket of trading-partner
currencies, with the dollar index <.DXY> down 0.55 percent at
77.435. Against the Japanese yen, the dollar <JPY=> was down
0.56 percent at 92.48.
The drop in the dollar and colder than normal temperatures
in the U.S. spurred a buying opportunity for crude oil <CLc1>,
driving prices up 2.4 percent or $1.97 to $81.33 a barrel.
Gold <XAU=> rose 2.5 percent, hitting a three-week high of
$1,123.4 an ounce, and lifting other precious metals, with
palladium climbing to its highest since July 2008, and platinum
hitting a 16-month peak.[]
Coming off its worst year in a decade and worst month in
more than five years, U.S. Treasury debt prices rose, with
benchmark 10-year U.S. Treasury notes <US10YT=RR> up 1/32,
yielding 3.833 percent versus 3.84 percent on Thursday, before
the New Year holiday.
Meanwhile, The FTSEurofirst 300 <> index of top
European shares rose to a 15-month closing high helped by
upbeat economic data and with banks among the major gainers.
The index rose 26 percent in 2009 -- its best yearly gain
in a decade and following a dismal 2008 when it slipped 45
percent. It has surged 63 percent since hitting a record low in
March 2009.
Japan's Nikkei average also hit a 15-month closing high on
its first trading day of the year, while the Tokyo Stock
Exchange [] had a smooth launch for its $145 million
"Arrowhead" trading system, as Asia's biggest bourse targets a
dramatic increase in speed to revive its business and
reputation. []
(Additional reporting by Gertrude Chavez in New York, Jeremy
Gaunt in London, Editing by Chizu Nomiyama)
