* MSCI global stocks index climbs
* Euro falls 1 pct on euro zone outlook
* U.S. jobs data due on Friday
* IMF urges accommodative policy
(Updates to midday, adds European shares close)
By Caroline Valetkevitch
NEW YORK, Sept 3 (Reuters) - The euro fell 1 percent on
Thursday on a darkening euro zone outlook, while global stock
markets rallied as the European Central Bank chief pledged to
beef up or prolong the bank's economic stimulus if necessary.
Oil prices also rose, following the rally in equities.
ECB President Mario Draghi's comments on the bank's
bond-buying program came as the bank cut its inflation and
growth forecasts for the euro zone, although he said no one on
the bank's Governing Council had argued to add to the program
now.
That helped to calm some jitters after weeks of market
turmoil as investors gauge whether global monetary policy will
be kept loose as central banks try to mitigate the recent market
turmoil stemming from growing worries about China's economy.
The euro fell, however, surrendering most of its solid gains
put up against the dollar since China devalued the yuan last
month.
Against the dollar, the euro EUR= touched a two-week low
of $1.1108 during Draghi's news conference. It was last off 1
percent at $1.1109. It was as high as $1.1332 earlier this week
as investors spooked by the market turmoil in China moved
heavily into the euro and yen.
"Draghi at his press conference raised the risk of additional
monetary support by the central bank," said Omer Esiner, chief
market analyst at Commonwealth Foreign Exchange in Washington.
"We were expecting some dovish comments, and he delivered."
Friday brings the monthly U.S. jobs report, a key element
in the Federal Reserve's decision on when to raise interest
rates for the first time in nearly a decade.
The Fed, which meets on September 16-17, has said it will
raise rates when it sees sustained economic recovery. While the
labor market has strengthened, inflation remains below the Fed's
2 percent target.
MSCI's all-country stock index .MIWD00000PUS rose 0.8
percent, while the FTSEuroFirst .FTEU3 leading index of 300
shares closed up 2.4 percent. Germany's DAX shot up 2.7 percent
.GDAXI .
The Dow Jones industrial average .DJI was up 103.66
points, or 0.63 percent, at 16,455.04. The Standard & Poor's 500
Index .SPX was up 12.62 points, or 0.65 percent, at 1,961.48.
The Nasdaq Composite Index .IXIC was up 15.72 points, or 0.33
percent, at 4,765.69.
Helping the stronger tone, data released on Thursday showed
new applications for U.S. unemployment benefits rose more than
expected last week, but the underlying trend remained consistent
with a strengthening labor market.
China's stock markets, the root of much of the global
volatility in recent weeks, were closed on Thursday for the
start of a two-day holiday.
U.S. BONDS RISE
U.S. Treasuries prices rose after the dovish outlook from
the ECB made U.S. government debt more attractive than European
counterparts. But caution ahead of Friday's monthly U.S.
employment report limited gains.
Benchmark 10-year Treasury notes US10YT=RR were last up
7/32 in price to yield 2.166 percent.
In the energy market, Brent LCOc1 was up 74 cents at
$51.24 a barrel, while U.S. crude CLc1 rose $1.01 cents to
$47.26 a barrel.