* U.S. crude climbs more than 6 pct
* Major U.S., European indexes up over 1 pct
* Sterling hits seven-year low vs dollar
* U.S. yields up as risk appetite lowers debt demand
(Updates with opening of U.S. markets; pvs dateline London)
By Lewis Krauskopf
NEW YORK, Feb 22 (Reuters) - Global stocks rallied on
Monday, boosted by a rise in oil and commodity prices, while the
euro and the British pound fell sharply against the dollar on
fears Britain would leave the European Union.
Sterling fell to a near seven-year low during the session
after popular London Mayor Boris Johnson said he would campaign
to leave the EU ahead of a June 23 referendum.
Battered oil prices jumped after the world's oil consumer
body said it expected U.S. shale production to fall this year
and next. Benchmark Brent LCOc1 rose 4.6 percent to $34.53 a
barrel, while U.S. crude gained 6.5 percent to $31.56 a barrel.
Stocks, whose performance has been tightly linked to oil
prices as the commodity's slide has deepened, posted solid gains
across major markets.
"Driving everything has been the recovery in energy and
commodity prices this morning," said Rick Meckler, president of
LibertyView Capital Management in Jersey City, New Jersey. "That
has been the part of the market that investors have been most
concerned with so seeing a rally, particularly in oil, has been
taken positively."
The Dow Jones industrial average .DJI was rising 183.64
points, or 1.12 percent, at 16,575.63, the S&P 500 .SPX was
gaining 22.64 points, or 1.18 percent, at 1,940.42 and the
Nasdaq Composite .IXIC was adding 49.00 points, or 1.09
percent, at 4,553.43.
All 10 major S&P sectors were higher, led by roughly
2-percent gains for both energy .SPNY and materials .SPLRCM
sectors.
The gains built on last week's strong performance after a
poor overall start for U.S. equities in 2016.
The pan-European FTSEurofirst 300 share index .FTEU3 rose
1.5 percent. Mining stocks were among the best performers, with
Anglo American AAL.L rising 10.9 percent, as the price of
copper CMCU3 reached a two-week high.
Stocks shrugged off a survey showing private sector business
activity in the euro zone increased at its weakest pace in more
than a year in February.
MSCI's index of world shares .MIWD00000PUS rose 1.1
percent.
Worries about a possible British exit from the EU sent the
euro down 1 percent against the dollar. Sterling fell 2 percent
against the greenback and dropped as low as $1.4057.
"A Brexit would be bad for sterling, but it would also be
bad for the euro," said Neil Jones, Mizuho's head of hedge fund
sales in London.
The dollar was up 0.9 percent against a basket of six
currencies .DXY .
U.S. Treasury yields rose as rising stock and oil prices
reduced demand for safe haven debt, ahead of an expected
government sale of $88 billion in new short- and
intermediate-dated debt this week.
Benchmark 10-year Treasuries US10YT=RR were last down 2/32
in price to yield 1.7552 percent.
Zinc prices CMZN3 surged to a four-month peak and other
base metals also gained as investors' appetite for risk
increased while they also worried about potential shortages.
Gold XAU= fell 1.3 percent as the dollar strengthened and
investor appetite for risk increased.