GLOBAL MARKETS-U.S. stocks, crude gain as Trump's improving health, stimulus hopes boost higher-risk assets

* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

(Updates to U.S. market open)
By Stephen Culp
NEW YORK, Oct 5 (Reuters) - Wall Street gained ground and
crude prices rose on Monday as investor risk appetite was stoked
by renewed stimulus optimism and news of President Donald
Trump's health progress.
U.S. stocks closed sharply lower on Friday after news of
Trump's infection with COVID-19 compounded mounting
uncertainties surrounding the looming presidential election.
But while Trump's condition remains unclear, he took a brief
ride in a presidential motorcade to wave to his supporters, and
his doctors said he could be released from Walter Reed National
Military Medical Center as early as Monday. "The fact that (Trump) defied his doctors' wishes and got
into the motorcade, people are saying he can't be that sick,"
said Peter Cardillo, chief market economist at Spartan Capital
Securities in New York. "The markets are saying his physical
condition can't be all that bad."
U.S. House Speaker Nancy Pelosi said on Sunday progress was
being made in negotiations on a bipartisan pandemic relief
package, fueling optimism that a new round of stimulus could be
in the offing, more than two months after emergency unemployment
benefits expired for millions of Americans. "It looks as though we're moving forward with stimulus,
which is encouraging," Cardillo added. "There's a good chance
the economy may avoid a double-dip recession."
Democratic contender Joe Biden opened his widest lead in a
month in the U.S. presidential race, according to a
Reuters/Ipsos poll released on Sunday.
The Dow Jones Industrial Average .DJI rose 311.32 points,
or 1.12%, to 27,994.13, the S&P 500 .SPX gained 38.98 points,
or 1.16%, to 3,387.42 and the Nasdaq Composite .IXIC added
170.05 points, or 1.54%, to 11,245.07.
Positive health updates regarding Trump and a flurry of deal
activity helped European stocks advance. Emerging market stocks rose 0.88%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 1.25%
higher, while Japan's Nikkei .N225 rose 1.23%.
Crude prices jumped as uncertainties abated, and were
further supported by an escalating oil workers strike in Norway,
where Equinor EQNR.OL shut down four of its offshore oil and
gas fields. U.S. crude CLcv1 rose 5.51% to $39.09 per barrel and Brent
LCOcv1 was last at $41.10, up 4.66% on the day.
The dollar index slipped and riskier currencies advanced.
The dollar index .DXY fell 0.45%, with the euro EUR= up
0.57% to $1.1783.
The Japanese yen weakened 0.28% versus the greenback at
105.64 per dollar, while sterling GBP= was last trading at
$1.2971, up 0.31% on the day.
Stimulus hopes and news of Trump's improving health also
gave a boost to U.S. Treasury yields. Benchmark 10-year notes US10YT=RR last fell 16/32 in price
to yield 0.7469%, from 0.694% late on Friday.
The 30-year bond US30YT=RR last fell 53/32 in price to
yield 1.55%, from 1.48% late on Friday.
Gold inched higher as the dollar slipped, but the safe haven
metal's gains were capped by risk-on sentiment. Spot gold XAU= added 0.8% to $1,914.01 an ounce.