* World stocks gain on econ data
* Wall Street set for gains
* Euro rises on data, auction
* U.S. jobs data
(Uptades prices post-ECB decision)
By Jeremy Gaunt, European Investment Correspondent
LONDON, Aug 5 (Reuters) - World stocks put in solid gains
and Wall Street looked set of a positive start on Thursday as
investors embraced relatively buoyant economic news ahead of
Friday's key U.S. jobs report.
Early caution in the face of European Central Bank and Bank
of England meetings dissipated when data showed German
industrial orders data rose 3.2 percent in June, surpassing
expectations thanks to strong foreign demand. []
An ADP report on Wednesday also added to sentiment, showing
the U.S. adding jobs in July..
The BoE and ECB both, as expected, left rates on hold.
A second day of upbeat earnings from Europe's banking sector
saw Germany's Commerzbank <CBKG.DE> raise its outlook after a
forecast-beating second quarter. Barclays of the UK <BARC.L>
beat expectations with a 44 percent rise in half-year profit as
bad debts dropped, but it made a big accounting gain, offsetting
a second-quarter slowdown at its investment bank.
Investors remained cautious, however, about U.S. non-farm
payrolls jobs data due on Friday against the backdrop of an
apparent U.S. economic slowdown, considered a major threat to
the global recovery, even if China and some others can take up
part of the slack.
"Corporate earnings will keep helping the market for some
more time, but if macroeconomic numbers are going to take over,
then good earnings will not be enough to support the market,"
said Koen De Leus, economist at KBC Securities.
"Nervousness is now about the U.S. jobs data as expectations
of the markets are really linked to these numbers. If they are
better than expected, then concerns of a double dip will fade
very fast. If that's not happening, then we might see a
correction."
MSCI's all-country world stock index <.MIWD00000PUS> and the
the Thomson Reuters global stock index <.TRXFLDGLPU> gained
about 0.4 percent.
The FTSEurofirst 300 <> rose 0.5 percent.
Earlier, Japan's Nikkei <> closed up 1.7 percent,
helped at least for a while by top carmaker Toyota Motor Corp
<7203.T> reporting its best operating profit in two years,
beating market estimates, and lifting its cautious forecasts
despite a sluggish U.S. recovery.
EURO FIRMS
The euro turned higher against the dollar, lifted by a
successful Spanish debt auction and positive comments about
Greece's progress in reducing its deficit from the International
Monetary Fund.
The currency also benefited from the German data. But the
U.S. jobs data remained a factor.
"Trade will probably be choppy going into tomorrow's
payrolls data," said Paul Robson, currency strategist at RBS.
The dollar fell 0.2 percent against a basket of currencies
<.DXY> to 80.718, only slightly above its recent low of 80.469,
its weakest since mid-April
The euro <EUR=> rose 0.3 percent to $1.3195.
Long-term euro zone government bonds were little changed,
but there weas some selling of short-term paper.
(Additional reporting by Jessica Mortimer and Atul Prakash;
Editing by Ron Askew)
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