GLOBAL MARKETS-U.S. stocks, crude jump on revived stimulus hopes, Trump's improving health

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(New throughout, updates prices, market activity and comments
to market close)
By Stephen Culp
NEW YORK, Oct 5 (Reuters) - U.S. stocks closed sharply
higher and crude prices surged Monday as renewed optimism
surrounding stimulus negotiations and news of President Donald
Trump's health progress helped calm investor anxiety.
U.S. House Speaker Nancy Pelosi and Treasury Secretary
Steven Mnuchin continued talks toward a bipartisan agreement on
a new pandemic relief package. That revived hopes for a new
round of stimulus more than two months after emergency
unemployment benefits expired for millions of Americans.
"This probably is a bit of a relief rally," said Chuck
Carlson, chief executive officer at Horizon Investment Services
in Hammond, Indiana. "Two weeks ago there wasn't much hope and
now there's a growing consensus that stimulus could pass before
the election."
"That seems to be where the market is leaning right now."
Trump's physician, Dr. Sean Conley, announced late in the
session that the president has met or exceeded all standard
criteria to be discharged following hospitalization for
treatment of COVID-19. "The markets don't like uncertainty and there seems to be
more clarity today on the president's health," Carlson added.
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 465.83 points,
or 1.68%, to 28,148.64, the S&P 500 .SPX gained 60.18 points,
or 1.80%, to 3,408.62 and the Nasdaq Composite .IXIC added
257.47 points, or 2.32%, to 11,332.49.
Positive updates regarding Trump's health and a flurry of
dealmaking activity helped European shares close at a two-week
high. The pan-European STOXX 600 index .STOXX rose 0.81% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
1.64%.
Crude prices surged on waning uncertainties, and were
further supported by an escalating oil workers strike in Norway,
where six offshore oil and gas fields were shut down.
U.S. crude CLcv1 futures settled at $39.22 per barrel, a
5.86% gain. Brent crude advanced 5.14% to settle at $41.29 per
barrel.
The safe-haven dollar dipped and riskier currencies
outperformed on mounting stimulus optimism. The dollar index .DXY fell 0.4%, with the euro EUR= up
0.58% to $1.1784.
The Japanese yen weakened 0.41% versus the greenback at
105.78 per dollar, while sterling GBP= was last trading at
$1.2982, up 0.39% on the day.
Risk-on sentiment also pushed longer-term U.S. Treasury
yields to five-year highs and the yield curve steepened to its
widest since late August. Benchmark 10-year notes US10YT=RR last fell 25/32 in price
to yield 0.7751%, from 0.694% late on Friday.
The 30-year bond US30YT=RR last fell 76/32 in price to
yield 1.5804%, from 1.48% late on Friday.
Gold inched higher as the dollar slipped, despite gains in
equities markets. Spot gold XAU= added 0.7% to $1,911.58 an ounce.