GLOBAL MARKETS-Stocks on track for first weekly gain in three, commodities soar

* Copper hits all-time high
* European stocks hit record high
* U.S. jobs report awaited
* Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates http://tmsnrt.rs/2egbfVh

By Ritvik Carvalho
LONDON, May 7 (Reuters) - World stocks headed for their
first weekly gain in three amid a surge in commodity prices,
while traders braced for a U.S. jobs report later on Friday that
could provide clues on when the Federal Reserve will ease back
on monetary stimulus.
European stocks opened higher, with the pan-European STOXX
600 index .STOXX hitting a record as strong data from Germany
and other major economies added to hopes of a swift recovery
from the pandemic shock. .EU
By midday in London, German DAX .GDAXI rose 1.3%, inching
closer to its life high, while France's CAC 40 .FCHI hit its
highest since November 2000 and Britain's FTSE 100 .FTSE
breached the 7,100 mark, up 0.7% on the day.
MSCI's benchmark for global equity markets .MIWD00000PUS ,
which tracks stocks in 50 countries, edged up about 0.2%, on
course for a 0.5% gain this week.
Its broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose about 0.4% on Friday, while Japan's Nikkei
.N225 gained about 0.2%.
China's blue chips .CSI300 closed 1.3% lower on the day,
despite data on Friday showing an unexpected pick-up in the
nation's export growth. Aluminium prices approached levels last seen in 2018 and
copper CMCU3 hit an all-time high as investors bet on a rapid
global recovery from the pandemic, led by the United States.
MET/L
Iron ore futures vaulted to a record high on Friday, while
crude oil rose. On Thursday, Wall Street investors piled into
economically-sensitive stocks on the reflation trade, driving
the Dow Jones Industrial Average to a record close on Thursday.
The Dow .DJI rose 0.9%, the S&P 500 .SPX gained 0.8% and
the Nasdaq Composite .IXIC added 0.4%.
S&P futures ESc1 pointed to further gains, edging 0.3%
higher on Friday.
"We remain positive that the reopening of the global economy
will continue, supporting a broadening of growth," said Mark
Haefele, chief investment officer at UBS Global Wealth
Management. "That will favour cyclical sectors, such as energy
and financials."
Financials and industrials led Thursday's rally in U.S.
shares after a report showed the number of Americans filing new
claims for unemployment benefits fell below 500,000 last week
for the first since the COVID-19 pandemic started, signalling
the labour market recovery entered a new phase amid a booming
economy. The Russell 1000 Value index .RLV gained 0.8%, outpacing
the Russell 1000 Growth index .RLG , which rose 0.5%.
The focus now shifts to Friday's non-farm payrolls report
due at 1230 GMT, with estimates ranging widely between 700,000
and more than 2 million jobs having been created in April.
So far, Fed Chair Jerome Powell has said the labour market
is far short of where it needs to be to start talking of
tapering asset purchases. The central bank has said it will not
raise its benchmark Fed funds rate through 2023.
"We ultimately expect the Fed to maintain its credibility,
and not need to prematurely normalize policy in reaction to a
burst in realized and expected inflation this year," strategists
at BCA Research said in a daily note.
"Meanwhile, the improving growth outlook and guidance ahead
of tapering will eventually nudge yields higher. Thus, we favour
short-duration, value stocks and procyclical equity sectors in
anticipation of higher yields over a 12-month horizon."
The safe-haven dollar sank to its lowest level in a week
against a basket of major peers on Friday ahead of the jobs
report, as firmness in global stock markets boosted risk
appetite.
The dollar index =USD dipped to 90.746, and was on track
for a 0.4% decline this week.
Treasury yields hovered near the lowest level this month on
Friday, further removing support for the greenback, after bond
traders largely shrugged off the better-than-expected initial
jobless claims data and waited for the non-farm payrolls report
to provide market direction.
The 10-year Treasury note US10YT=RR yielded 1.5771% in
European trade.
Gold XAU= headed for a 2.5% weekly gain, the most since
December, as the weaker dollar and easing Treasury yields
propelled the precious metal, an inflation hedge, above the
psychological $1,800-an-ounce level to last trade at around
$1,818.

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Emerging markets http://tmsnrt.rs/2ihRugV
Global asset performance http://tmsnrt.rs/2yaDPgn
U.S. non-farm payrolls https://tmsnrt.rs/3eZrWAB
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