GLOBAL MARKETS-European shares rally as investors begin May in bullish mood

* Shares in Europe add to recent gains, Wall St set to open
higher
* UK, Chinese, Japanese markets closed for holidays
* Busy week for economic data with U.S. payrolls on Friday
* Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates http://tmsnrt.rs/2egbfVh

By Tommy Wilkes
LONDON, May 3 (Reuters) - European shares gained on Monday
as investors bullish about the global economic recovery looked
ahead to a busy week for U.S. economic data that is expected to
underline the strength of the rebound.
With China, Japan and Britain closed for public holidays,
volumes were thin and Asian shares got off to a slow start, with
most markets slipping into the red.
But investors' optimistic mood, enhanced by a strong run of
corporate earnings the past two weeks, has extended into May in
Europe.
The Euro STOXX index .STOXXE rose 0.68% in early trading,
while the German DAX .GDAXI gained 0.7% and France's CAC 40
.FCHI 0.61%.
Wall Street futures were higher ESc1 , pointing to yet more
gains after stock markets notched up another round of record
highs last week.
The MSCI world equity index .MIWD00000PUS , which tracks
shares in 49 countries, was flat on the day and below record
highs, however, as losses in Asia offset the gains in Europe.
Underpinning investors' enthusiasm for riskier assets is the
sense that the global economy is about to boom as countries come
out of lockdowns and consumers and businesses unleash some of
their excess savings built up over the past year.
German retail sales data for March came in far better than
expected, underlying that a U.S.-led economic rebound is now
gaining traction elsewhere.
Recent business surveys have also pointed to soaring
confidence about the recovery, although some economists think
businesses may be getting ahead of themselves and influenced
more by the success and speed of COVID-19 vaccination rollouts.
"The data has been unrealistically strong in recent months -
while the underlying economy is performing very well,
manufacturing growth is not quite at the stratospheric levels
the surveys imply," said UBS economist Paul Donovan.
"Newsflow about the vaccination cycle may be more important
in dictating answers to sentiment surveys than actual economic
activity."
A busy week for U.S. economic data is expected to show
resounding strength, particularly for the ISM manufacturing
survey and April payrolls. Forecasts are that 978,000 jobs were
created in the month as consumers spent their stimulus money and
the economy opened up more.
Analysts at NatWest Markets, for instance, see U.S. payrolls
surging by 1.25 million in April with unemployment diving to
5.2%, from 6% in March.
Such gains could stir speculation of a tapering in asset
purchases by the Federal Reserve, though Chair Jerome Powell has
shown every sign of staying patient on policy.
Powell is due to speak later on Monday and will be followed
by a raft of Fed officials this week. Dallas Fed President
Robert Kaplan caused a stir on Friday by calling for beginning
the conversation about tapering. Powell's patience has helped limit selling pressure in
Treasuries, yet 10-year yields still ended last week with a rise
of 6 basis points. They were last 1.626% US10YT=RR , down
marginally on the day.
The rise offered some support to the U.S. dollar, which has
been pressured by the rapid expansion of the U.S. budget and
trade deficits, a byproduct of the economy's outperformance.
The dollar index stood at 91.218 =USD and off a two-month
trough of 90.422, though it still ended April with a loss of 2%.
The euro rose 0.2% to $1.2040 EUR= , having backtracked
from a nine-week peak of $1.2149 on Friday.
Cryptocurrency ether scaled a new record high beyond $3,000
ETH=BTSP as investors bet that it will be of ever greater use
in a decentralised future financial system. Its lightning rally
- now up 325% in 2021 - has eclipsed that of bigger rival
bitcoin. Oil prices ran into profit-taking, having ended last month
with gains of 6% to 8%. O/R
Brent LCOc1 was last down 9 cents at $66.67 a barrel,
while U.S. crude CLc1 lost 6 cents to $63.52 per barrel.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Emerging markets http://tmsnrt.rs/2ihRugV
Global asset performance http://tmsnrt.rs/2yaDPgn
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>