GLOBAL MARKETS- Stocks hit one-month highs on news of U.S.-China trade talks

* New U.S.-China talks boost trade optimism
* Safe-havens fall on increased risk appetite
* U.S. added more private sector jobs than expected - ADP
* Oil rises on news of trade talks, but held back by U.S.
inventories jump

(Updates to U.S. market open, changes dateline (previously
LONDON), changes byline)
By Stephen Culp
NEW YORK, Sept 5 (Reuters) - Stocks hit one-month highs
worldwide on Thursday as improved risk appetite led investors
away from safe-haven assets such as bonds and gold on renewed
hope for progress in U.S.-China trade negotiations and upbeat
U.S. economic data.
The announcement that top negotiators from the United States
and China will meet early October in Washington raised hopes of
a possible resolution to the two countries' brutal trade war
that has wreaked havoc on the global economy.
"Optimism rules the day on the potential for some sort of
trade deal between now and year-end," said Peter Tuz, president
of Chase Investment Counsel in Charlottesville, Virginia.
"People had been pessimistic but moods can shift in a second,
and they have."
"We're in a headline-driven market and the headlines over
the last couple of days have been pretty positive," Tuz added.
U.S. private payrolls increased in August at their fastest
pace in four months, according to ADP, blowing past analyst
estimates ahead of Friday's more comprehensive jobs report from
the Labor Department. A separate report showed the U.S. services industry
rebounded last month to its fastest expansion since February,
bouncing back from a three-year low, according to the Institute
for Supply Management's non-manufacturing purchasing managers
index (PMI). The Dow Jones Industrial Average .DJI rose 446.4 points,
or 1.69%, to 26,801.87, the S&P 500 .SPX gained 41.5 points,
or 1.41%, to 2,979.28 and the Nasdaq Composite .IXIC added
138.85 points, or 1.74%, to 8,115.73. European and emerging markets stocks jumped on hopes that
next month's U.S.-China trade talks would move the world's two
largest economies closer toward ending their cantankerous
dispute, which has pushed major economies toward recession.
The pan-European STOXX 600 index .STOXX rose 0.63% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
1.17%.
Emerging market stocks rose 1.25%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 1.06%
higher, while Japan's Nikkei .N225 rose 2.12%. ADP's private employment report helped U.S. Treasury yields
extend their earlier gains. Benchmark 10-year notes US10YT=RR last fell 1-4/32 in
price to yield 1.5857%, from 1.459% late on Wednesday.
The 30-year bond US30YT=RR last fell 2-27/32 in price to
yield 2.0797%, from 1.957% late on Wednesday.
The dollar held its losses against a basket of world
currencies following the upbeat U.S. jobs data. Earlier news of
a fresh round of trade talks weighed on the dollar and the yen
while boosting riskier currencies.
The dollar index .DXY fell 0.07%, with the euro EUR= up
0.06% to $1.104.
The Japanese yen weakened 0.61% versus the greenback at
107.06 per dollar, while Sterling GBP= was last trading at
$1.2321, up 0.58% on the day.
The tide of trade optimism also lifted oil prices, but the
gain was capped by a report showing an unexpected increase in
U.S. crude inventories. U.S. crude CLcv1 rose 1.88% to $57.32 per barrel and Brent
LCOcv1 was last at $61.94, up 2.04% on the day. Gold retreated from its six-year peak as investors shifted
to riskier assets.
Spot gold XAU= dropped 2.5% to $1,513.84 an ounce.
Copper CMCU3 rose 1.88% to $5,856.00 a tonne.
Three-month aluminum on the London Metal Exchange CMAL3
rose 0.56% to $1,785.00 a tonne.

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