Global stocks gain on signs of recovery

By Herbert Lash

NEW YORK (Reuters) - Crude oil and global stocks rose on Monday, lifting a number of major indexes to new 2009 highs, on fresh signs that the U.S. economy is pulling out of recession and as a rescue package for lender CIT sparked optimism about credit markets.

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

Commodities benefited from the improving sentiment. Crude oil settled just shy of $64 a barrel, copper hit a nine-month high and gold rose more than 1 percent to settle above $950 an ounce for the first time in more than a month.

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."

Global stocks, as measured by MSCI's all-country world index .MIWD00000PUS, rose to a 2009 high as did MSCI's emerging markets index .MSCIEF while Asian stocks outside of Japan .MIAPJ0000PUS rose to their highest since world stocks plunged following Lehman Brothers' collapse last September.

In the United States, the benchmark Standard & Poor's 500 .SPX notched its highest close since early November, while for the tech-rich Nasdaq .IXIC had its highest close for the year.