* Wall Street gains as rate-increase expectations ease
* Gold turns up
* Oil up as Russia willing to meet other producers
(Updates market trading, adds U.S. sectoral moves)
By Caroline Valetkevitch
NEW YORK, Oct 5 (Reuters) - Oil prices jumped after Russia
said it was ready to meet with other producers to discuss the
market, while world stock markets gained, led by energy and
mining shares on the oil surge amid a backdrop of continuing low
global interest rates.
Wall Street continued a rally from Friday, helped by
increases of more than 2 percent in S&P's energy .SPNY and
materials .SPLRCM indexes.
The S&P health index .SPXHC was the only sector in the
red, dropping 0.6 percent amid a fall in biotechs after 12
nations reached a deal to set up a free-trade zone for
two-fifths of the world's economy.
The pact between the United States and other Pacific Rim
countries falls short on what health industry groups were
expecting on patent protection for drugs. ID:nL1N12514R
News that Nelson Peltz's Trian Fund Management disclosed a
roughly 1 percent stake worth $2.5 billion in GE GE.N lifted
GE's stock 4.1 percent to $26.52. ID:nnL3N12533L
An outlook over the next months for continuing low rates,
likely to keep corporate spending and profits buoyant, also kept
equity markets aloft in the U.S., Asia and Europe.
"The market is essentially shifting to an ever-longer
horizon on the possibility of the Fed hiking (rates)," said
Sebastien Galy, currency strategist at Deutsche Bank (XETRA:DBKGn) in New
York.
RUSSIA
Oil prices climbed after the news on Russia, with Brent
LCOc1 rising 2.7 percent to a high of $49.43 a barrel before
easing back to around $49.33, up $1.20. U.S. crude CLc1 was
$1.10 higher at $46.64 a barrel.
Russia, one of the world's top three oil producers, said it
was prepared to meet OPEC and non-OPEC oil producers to discuss
the market if such a meeting is called. ID:nL5N1230ET
ID:nL5N1220M4 Moscow had been unwilling in the past to cut its
oil output to support prices.
The U.S. dollar rose against the safe-haven Japanese yen and
Swiss franc on renewed risk appetite in the wake of a
disappointing U.S. jobs report.
Data on Friday showing a stumble in U.S. jobs growth has led
traders to expect that the Federal Reserve will delay its first
rate hike since 2006 to early next year. While those
expectations have kept the dollar from gaining against the euro,
they have helped the dollar gain against safe-haven currencies.
The dollar was last up 0.3 percent against the yen at
120.265 yen JPY=EBS .
The Dow Jones industrial average .DJI rose 216.77 points,
or 1.32 percent, to 16,689.14, the S&P 500 .SPX gained 25.76
points, or 1.32 percent, to 1,977.12 and the Nasdaq Composite
.IXIC added 44.97 points, or 0.96 percent, to 4,752.74.
Before Friday's jobs data, the Fed had been widely expected
to raise U.S. interest rates by year-end. It decided not to
change its policy path in September because of anxiety over
slowing growth in the world No. 2 economy, China, and the
potential impact of that on global markets.
European stocks surged, with the FTSEuroFirst 300 index
.FTEU3 in Europe up 3 percent. Data showing euro zone business
activity grew at its weakest pace in four months during
September reinforced expectations monetary policy backdrop will
remain equity-friendly.
MSCI's all-country world index .MIWD00000PUS was up 1.6
percent.
ASIA, BONDS
Japan's Nikkei .N225 ended the day up 1.6 percent, while
Chinese markets were closed for a holiday.
Analysts said the Bank of Japan could ease policy as soon as
this week, though action at its Oct. 30 meeting may be more
likely. ID:nL3N125199
In the bond market, U.S. Treasuries prices trimmed losses as
a steeper-than-forecast drop in a private index on U.S. services
sector activity in September revived bets a Fed rate hike will
be unlikely in the near term.
The Institute for Supply Management said its gauge on U.S.
services industries fell to its lowest level since June.
ID:nN9N118014
Benchmark 10-year Treasuries notes US10YT=RR fell 8/32 in
price for a yield of 2.017 percent, up 3 basis points from late
Friday. The 10-year yield touched 1.904 percent on Friday, its
lowest level since late April, according to Reuters data.
Gold edged higher as the dollar weakened after the weak U.S.
jobs report delayed expectations of a rate rise in the near
term. Spot gold XAU= , was up 0.2 percent at $1,139.81 an
ounce.