Oil and stocks rise on economic optimism

By Herbert Lash

NEW YORK (Reuters) - Crude oil and global stocks rose on Monday, with a number of major indices setting 2009 highs, on fresh signs that the U.S. economy is pulling out of recession and optimism over a rescue package for lender CIT.

The dollar weakened broadly, slipping to a six-week low against the euro, as investors jumped back into riskier assets amid further solid second-quarter U.S. earnings.

The price of U.S. and euro zone government debt mostly fell as demand for safe-haven assets slid, while copper hit a nine-month high and gold rose more than 1 percent on a weaker dollar and improving economic sentiment.

An index gauging the U.S. economy's prospects increased for a third straight month in June, suggesting the recession was drawing to a close, the New York-based Conference Board said.

The index of leading economic indicators, which is supposed to forecast economic trends six to nine months ahead, rose 0.7 percent in June following a revised 1.3 percent gain in May.

"The confirmation of recovery is coming from top down and bottom up," said Georgina Taylor, equity strategist at Legal & General Investment Management. "Companies are suggesting that things are starting to improve. Economic data is stabilizing."

Asian stocks outside of Japan .MIAPJ0000PUS rose to their highest since world stocks plunged following Lehman Brothers' collapse last September.

Global stocks, as measured by MSCI's all-country world index .MIWD00000PUS, rose to a new 2009 high as did MSCI's measures for emerging markets .MSCIEF, and the tech-rich Nasdaq .IXIC in the United States also set a 2009 high.