GLOBAL MARKETS-Global stocks grind higher on growth hopes, oil ebbs on COVID-19 fears

* MSCI World up 0.3%, near record high
* Japan leads Asia gains overnight
* Oil dips as India, Japan COVID-19 cases rise

By Simon Jessop and Kevin Buckland
LONDON/TOKYO, April 22 (Reuters) - Global stocks ground
higher while oil ebbed on Thursday as markets haggled over
whether to bet on economic recovery in the United States and
other developed markets or worry about a surge in COVID-19 cases
in countries including India.
The push-pull of that trading dynamic comes as vaccination
rates in Britain and other countries continue to improve and
pandemic-weary citizens embrace more freedoms to drive economic
growth, something reflected in some recent corporate earnings.
After a recent mini sell-off, MSCI's broadest gauge of
stocks across the globe .MIWD00000PUS was up 0.3% in early
European trade to trade back within 1% of its all-time closing
high.
Europe's top indexes also all opened higher ahead of the
latest meeting of the European Central Bank, with the broad
STOXX Europe 600 .STOXX up 0.5%, bolstered by upbeat earnings
from Nestle NESN.S and Volvo VOLVb.ST .
"The European Central Bank isn't expected to ruffle any
feathers this Thursday, with analysts predicting that it will be
another steady session from Christine Lagarde and Co.," said
Connor Campbell, financial analyst at Spreadex.
"But with a while until the next meeting – the central bank
skips May – the ECB could use this opportunity to sharpen its
forward guidance. There are also hawks lurking among the doves,
meaning the get-together may not go as smoothly as forecast."
The buoyant start to the day followed overnight gains in
Asia, where Japan's Nikkei 225 .N225 rose 2.4% and MSCI's
broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 0.3%.
U.S. stock futures ESc1 NQc1 pointed to a flat open on
Wall Street.
Despite stocks being generally upbeat, oil - another asset
geared to perceptions of economic growth - fell after a
resurgence of COVID-19 cases in India and Japan, and a recent
surprise stock build in the United States, weighed on sentiment.
U.S. crude CLc1 was last down 0.4% at $61.08 per barrel
while European benchmark Brent LCOc1 was down 0.4% at $65.06.
"An unexpected and high increase in U.S. inventories fuelled
concerns over weak demand which came against expectations for a
strong recovery in demand," said Satoru Yoshida, a commodity
analyst with Rakuten Securities.
"What is hurting market sentiment is also the fact that the
COVID-19 pandemic is spreading again at a fast pace in India and
Japan despite the fact there had been hopes that the spread of
vaccination would improve the infection situation," he said.
Elsewhere, U.S. Treasury yields stayed depressed, with the
yield on benchmark 10-year notes US10YT=RR at 1.5486% on
Thursday, a level last seen in early March.
In currency markets, the dollar =USD remained pinned near
multi-week lows, down 0.1% against a basket of major peers as
U.S. yields stayed subdued.
Against that backdrop, spot gold XAU= steadied near a
two-month high and within touching distance of $1,800 an ounce.
It last traded at $1,792.8 an ounce.
The European Central Bank decides policy later on Thursday,
with no change expected.
The U.S. Federal Reserve and Bank of Japan follow next week.

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