Global stocks gain; oil prices rebound

On Wall Street, stocks opened slightly lower. But by late morning, the three major US stock indexes had rebounded to hit session highs. Stocks advanced following data from the Institute for Supply Management that showed the pace of growth in the US manufacturing sector picked up a tad in March. Energy and basic materials stocks led the rally.
The ISM report led European equities to extend gains after trading around break-even following Wall Street's weak opening. The FTSEurofirst 300 Index of top regional shares in Europe leapt 1.41 percent to close provisionally at 1,084.07.
The Institute for Supply Management said its index of US factory activity rose to 53.4 in March from 52.4 in February, topping economists' consensus forecast for a reading of 53.0.
"This report seems to agree with the employment data showing that more people are going back to work," said Sam Wardwell, investment strategist at Pioneer Investments in Boston.
"The stock market is telling us that the economy is getting stronger. Jobless claims are telling us that the economy is getting stronger. The ISM is telling us that the economy is getting stronger."
The Dow Jones Industrial Average gained 69.70 points, or 0.53 percent, to 13,281.74. The S&P 500 Index rose 11.81 points, or 0.84 percent, to 1,420.28. The Nasdaq Composite added 25.10 points or 0.81 percent, to 3,116.67.
The MSCI all-country world equity index climbed 1 percent.
Crude oil erased earlier losses to turn higher on the US ISM report. Oil, like other assets viewed as risky, traded lower earlier in the session as Europe's contraction in factory activity outweighed a brighter manufacturing outlook in China, South Korea and Taiwan, three of Asia's leading exporters.
China's official PMI hit an 11-month high, but a separate private survey from HSBC painted a gloomier picture.
"PMIs out of Europe are another reminder of the extent economies have gone down," said Omer Esiner, chief market analyst with Commonwealth Foreign Exchange in Washington, D.C. "Strong US data this week is likely to see the dollar strengthen on rising yield appeal."
The dollar trimmed losses against the yen, but the euro extended losses against the yen.
The euro fell 0.4 percent against the dollar to $1.3308, after hitting a session low of $1.3281. The euro slipped 1.5 percent to 109.24 yen.
"It gives more credence to the narrative we've been seeing over the past couple of weeks, that stronger US data will make it less likely the Fed will participate in QE3," said John Doyle, currency strategist at Tempus Consulting in Washington.
Brent and US crude futures turned higher on the US manufacturing data.
Brent crude was up $1.43 at $124.31 a barrel, while US crude was up $1.32 at $104.34.
FROM: REUTERS