* European shares climb to highest since early March
* German DAX plays catch up after day off
* U.S. unrest and Sino-U.S. worries rumble in background
* Dollar nurses losses after Monday tumble
By Marc Jones
LONDON, June 2 (Reuters) - World stocks climbed towards
three-month highs on Tuesday as the global coronavirus recovery
effort won out over U.S.-China tensions and the worst civil
unrest in the United States in decades.
U.S. President Donald Trump's vow to use force to end
violent protests in American cities and reports
China had ordered U.S. soybean purchases to be halted had
checked Asia overnight, but Europe got the bulls back on track.
The pan-European STOXX 600 .STOXX jumped over 1%.
Germany's DAX .GDAXI surged nearly 3% on news Lufthansa's
board had approved its government bailout and as Volkswagen and
BMW shares rose as much as 7% at the prospect of a 5 billion-
euro government-funded scheme to boost sales. .EU
The euro EUR= was at a two-and-a-half-month high as the
dollar struggled. Italian and Spanish bonds were still being
helped by a proposed 750 billion-euro EU stimulus plan
and bets on more European Central Bank help.
GVD/EUR
"In a way, it is remarkable that the market remains in this
positive mood," said Elwin de Groot, head of macro strategy at
Rabobank. "Even with these rising protests in the U.S. and the
situation in Hong Kong at the moment, the market is pushing on
and seeing room for optimism."
World stock markets .MIWD00000PUS have rallied nearly 36%
from March lows on hopes for a swift recovery from a pandemic
that has killed nearly 375,000 people and crushed global growth
as countries shut down to try and slow the virus' spread.
May Purchasing Managers Index data pointed to a fragile but
encouraging recovery in global manufacturing, raising hopes that
the worst is over. Japan's Nikkei .N225 rose 1.2% to its highest since late
February in Asia and markets in Seoul .KS11 , Taipei .TWII
and Hong Kong .HSI also gained.
"This optimistic read for risk can only persist if measures
like orders and employment continue to improve month to month,"
said Alan Ruskin, chief international strategist at Deutsche
Bank.
"Early setbacks would be a very poor sign, but are not
expected in the period immediately following the end of
lockdowns."
BOIL OVER
The dollar was at multi-month lows against most major
currencies following a 5% drop for its main index USD= in
recent weeks. FRX/
The euro got as high as $1.1160 on Tuesday, Britain's pound
topped $1.2530 GBP= for the first time in over a month and the
Canadian CAD= and Australian dollars AUD= both rose around
0.4% as commodity markets continued their recoveries.
Brent oil LCOc1 rose another 2% to just over $39 a barrel.
Traders are expecting major producers to extend output cuts at
an OPEC+ meeting later in the week. U.S. crude CLc1 was up 1%
at $35.86 a barrel. O/R
Copper prices were at their highest in nearly three months
on signs that demand from top metals consumer China was
recovering.
Stockpiles CU-STX-SGH dropped at the fastest pace last
week since September 2017, data showed. Aluminum producer Rusal
0486.HK said its customers were gradually returning after a
major slump in April.
"This is real demand. Domestic investment is
booming，especially in infrastructure. Supply and transport
slowdowns from South America are also supporting prices," said a
copper trader in China.
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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
Asia stock markets https://tmsnrt.rs/2zpUAr4
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(Additional Reporting by Mai Nguyen and Tom Westbrook in
Singapore; editing by Larry King)