GLOBAL MARKETS-Dollar, stocks rally on rising Chinese imports

* Dollar, euro rally on strong import data from China

* U.S. stocks (Read more about the stock market today. ) gain as fears of double-dip recession ebb

* Crude oil rises to more than $75 on U.S. supply outage

* China data, Dubai World deal support risk appetite
(Adds opening of U.S. markets, changes dateline; previous
LONDON)

By Herbert Lash

NEW YORK, Sept 10 (BestGrowthStock) – The euro and U.S. dollar
rallied on Friday after strong import data from China raised
optimism about global growth, while stocks edged higher, buoyed
by the economic outlook and rising oil prices.

The dollar rose nearly 1.2 percent on the day and the euro
gained against the Swiss franc as the safe-haven currency came
under selling pressure due to the rise in risk appetite. For
details see: [ID:nN10249071]

Chinese imports jumped in August, a sign of potential
stronger domestic demand in an economy that is a major driver
of global growth. [ID:nTOE689024].

Imports rose 35.2 percent in from a year earlier, easily
beating July’s 22.7 percent rise and market forecasts of a 26.1
percent gain, General Administration of Customs data showed.

Risk aversion also eased on news that Dubai World
[DBWLD.UL] had reached a deal to restructure its liabilities,
helping ease renewed fears about Dubai’s debt woes.
[ID:nLDE6890IT].

Gold dropped 1 percent as the dollar moved back into
positive territory and global stocks reversed early losses to
trade slightly higher as U.S. stocks (Read more about the stock market today. ) rose after the open, the
sixth day of gains in the last seven sessions.

“There has been strong risk assumption on the China data
overnight,” said John Doyle, senior currency strategist at
Tempus Consulting in Washington.

MSCI’s all-country world equity index (.MIWD00000PUS: ) rose
0.1 percent, aided by higher U.S. stocks (Read more about the stock market today. ).

But European shares retreated from four-month highs as bank
shares slipped ahead of the Basel Committee meeting and on a
report that Deutsche Bank plans to raise up to 9 billion euros
($11.4 billion) in a stock offering. [ID:nLDE689137]

Shortly after 11 a.m. EDT, the Dow Jones industrial average
(.DJI: ) gained 40.79 points, or 0.39 percent, to 10,456.03. The
Standard & Poor’s 500 Index (.SPX: ) rose 5.59 points, or 0.51
percent, to 1,109.77. The Nasdaq Composite Index (.IXIC: ) gained
7.26 points, or 0.32 percent, to 2,243.46.

Worries in August that the U.S. economy was poised to slip
back into recession have waned as economic data, while still
sluggish, has beat consensus forecasts since September began.

“After spending the better part of the summer pricing in
fears of a double-dip recession, the market is going to start
pricing the fact that (it) most likely doesn’t come about,”
said Art Hogan, chief market analyst at Jefferies & Co in
Boston.

U.S. crude oil rose 2 percent to more than $75 a barrel due
to the shutdown of a major pipeline, but a leading forecaster
said demand would remain tepid. [ID:nSGE689037]

The International Energy Agency said global oil demand
growth was expected to increase a little this year but slip in
2011 and that fuel consumption could be much weaker if the
world economy slows. [IEA/M]

U.S. light sweet crude oil (CLc1: ) rose $1.48 to $75.73 a
barrel. Brent crude (LCOc1: ) gained 30 cents to $77.77.

A leak forced Enbridge to shut down the biggest pipeline
supplying Canadian oil to refineries in the U.S. Midwest and to
a key storage hub in Oklahoma.

U.S. Treasury prices fell as investors reduced their
holdings of safe-haven government bonds after a record supply
of higher-yielding corporate bonds this week. [ID:nN10321375]

The benchmark 10-year U.S. Treasury note (US10YT=RR: ) was
down 11/32 in price to yield 2.80 percent.

December Bund futures slipped to a session low, tracking
U.S. Treasuries lower. [ID:nLDE68918J]

Copper eased as the market fretted about tighter policy in
top consumer China, but strong metals import data from the
country helped support prices. [ID:nLDE6890KX]

Spot gold prices (XAU=: ) rose $3.25 to $1,246.80 an ounce.
(Reporting by Nick Olivari and Richard Leong in New York and
Marie-Louise Gumuchian, Atul Prakash, Kirsten Donovan, Pratima
Desai and Humeyra Pamuk in London; Writing by Herbert Lash;
Editing by Dan Grebler)

GLOBAL MARKETS-Dollar, stocks rally on rising Chinese imports