* Economic optimism lifts riskier assets
* World stocks up 0.2 percent
* Dollar slightly stronger
* Oil buoyant above $90 a barrel
By Jeremy Gaunt, European Investment Correspondent
LONDON, Jan 4 (Reuters) - Optimism about the state of the
world economy lifted stocks on Tuesday as well as boosting the
dollar and keeping oil prices at a near 27-month peak.
Monday's U.S, Chinese and European PMI manufacturing data
continued to boost risk sentiment across financial markets along
with the "January effect" that occurs as fund managers dispense
with the need to settle end-of-year balances.
Some investors were also looking ahead to Friday's U.S, jobs
data, expecting to see the world's largest economy in an
improving state of health.
"People are starting to recognise there is some improvement
in the employment picture in the United States. You would expect
to see some of the confidence of the (manufacturing) PMI to be
reflected in the non-farm payrolls," said Philip Isherwood,
European equities strategist at Evolution Securities.
World stocks as measured by MSCI <.MIWD00000PUS> were up
nearly a quarter of a percent on the day, with the emerging
market sub-index <.MSCIEF> gaining 0.4 percent.
In Europe, the FTSEurofirst 300 <> gained 0.6 percent
while Japan's Nikkei <> began the year with a 1.7 percent
climb to a 7-1/2 month closing high.
"Investors may stay cautious before U.S. jobs data this
Friday, but they are optimistic overall," said Hiroichi Nishi,
general manager at Nikko Cordial Securities.
Recent bullishness about the global economy has also pushed
up the price of crude oil, which hovered near its highest levels
in more than two years.
U.S. crude for February <CLc1> rose 9 cents to $91.64 a
barrel, close to Monday's peak of $92.58, which was the highest
intraday price since early October 2008.
"Oil sentiment has turned decidedly bullish, partly driven
by unusually cold weather, but more due to an increasingly
optimistic consensus view on 2011 economic performance,
especially for the U.S.," JPMorgan analysts said.
DOLLAR RISES
The upbeat U.S. manufacturing data lifted the dollar, while
the euro eased slightly after last week's short-covering surge.
The dollar was up 0.31 percent on a basket of currencies
<.DXY> while the euro eased around 0.1 percent from late U.S.
trading on Monday to $1.3353 <EUR=>.
The single currency had dipped as low as $1.3324 earlier on
Tuesday, with some traders citing talk of possible euro-selling
flows related to bond redemptions and coupon payments of euro
zone debt.
"We are returning to normal levels of trading and the key
themes that people are coming back to is structural weakness in
the euro zone and worries about the Chinese economy," said
Jeremy Stretch, head of currency strategy at CIBC World Markets.
Bund futures shed early gains as commodities and equities
continued to benefit from broader signs of an improved economic
outlook.
(Additional reporting by Anirban Nag and Brian Gorman;
Editing by John Stonestreet)
