Global stocks up on economic hopes

By Herbert Lash

NEW YORK (Reuters) - Global stocks rose and the U.S. dollar fell on Friday after upbeat U.S. data this week boosted hopes that a global recession was touching bottom.

Oil prices, after an initial rise, fell to below $70 a barrel on a sell-off in the U.S. gasoline market as dealers bet there would be ample fuel supply to meet U.S. summer demand.

Moves in foreign exchange were limited, with investors wary ahead of a Federal Reserve policy meeting next week and as another record sale, about $104 billion, of U.S. government debt loomed.

Investors wonder if Fed policy-makers will hint about the fate of the U.S. Treasury's debt buying program.

Trading in Treasury debt was light, making the market choppy, traders and analysts said. And there was little economic news worldwide.

But the International Monetary Fund is likely to revise its 2010 growth forecast for the world up, an IMF top official said at a Turkish business conference.

John Lipsky, the IMF's first deputy managing director, warned, however, that it was far too early to declare victory, with financial conditions far from normal and the world economy still in recession.

"Sustaining gains through the quiet summer months will likely be another separate challenge markets need to address," said Jimmy Yates, head of equities at CMC Markets.