* European stocks higher, MSCI index up 0.15 percent
* Busy week for global indicators, highlighted by US
* Yen at 5-week high versus wobbly dollar
By Anirban Nag
LONDON, June 30 Global stocks rose on Monday, on
track for their fourth straight quarter of gains, as investors
bet that a raft of U.S. and European economic data due this week
will soothe recent worries over the pace of growth.
MSCI's world equity index, which tracks
shares in 45 countries, rose 0.15 percent. It has risen over 4
percent this quarter, aided by the prospect that monetary policy
in the major economies will remain accommodative for longer.
European stocks rose, with the FTSEurofirst 300
index of top European shares up 0.3 percent at 1,375.49 points,
steadying after a 1.7 percent slide last week.
Investors will focus on euro zone inflation data for June,
due at 0900 GMT, which should show inflation stuck at 0.5
percent, its ninth consecutive month in the European Central
Bank's "danger zone" below 1 percent.
That should keep the threat of deflation in the euro zone at
bay for now. But with inflation nowhere near the ECB's target of
just under 2 percent, expectations are the central bank will
keep policy loose for longer, underpinning demand for riskier
assets and peripheral euro zone bonds, analysts said.
"If anything, we see risks to our forecast as skewed to the
upside, mainly related to energy prices," said Francois Cabau,
an analyst at Barclays.
German inflation was above forecasts on Friday, fuelling
expectations that the numbers for the whole of the euro zone
could rise above the 0.5 percent predicted in a Reuters poll.
As a result, German Bund yields edged up while the euro held
steady against the dollar at $1.3646.
"Germany having higher than expected inflation pushed up
expectations that we are not going towards a deflation
scenario," said Christian Lenk, a strategist at DZ Bank.
The ECB cut all its interest rates earlier in June and
promised more liquidity for banks that lend to businesses and
households as it tries to revive growth and bring inflation
closer to target.
HOPES FOR A U.S. REBOUND
French bank BNP Paribas will be in focus after
sources said the U.S. Justice Department is expected to announce
on Monday a settlement involving a record fine of nearly $9
billion over alleged U.S. sanctions violations.
Investors are hoping to see evidence of an economic rebound
in the United States in this week's busy calendar of data that
includes the June non-farm payrolls report on Thursday, a day
earlier than usual due to the July 4 holiday.
Economists polled by Reuters expect 213,000 jobs to have
been added in June, for the fifth straight month of gains above
200,000, a run unmatched since the period from September 1999 to
January 2000. A weaker-than-expected payrolls report could see
the U.S. dollar suffer more.
The U.S. earnings season also starts in the next couple of
weeks, which will provide evidence on how the economy and
profits are faring.
Globally, purchasing managers' indices (PMIs) for
manufacturing are out on Tuesday and services on Thursday. They
are expected to show a picture of growth or at least stability
despite geopolitical tensions around Ukraine and Iraq.
In commodity markets, gold was steady at $1,315.40 an
ounce, underpinned by geopolitical unrest in Iraq and Ukraine
and a soft dollar. The safe-haven yen was at a five-week high
against the dollar at 101.35 yen per dollar.
Brent crude oil lost 42 cents to 112.88 a barrel,
while U.S. crude futures fell 49 cents to $105.25. Oil
prices have come off recent highs as fighting in Iraq stayed
away from the country's south, where most of its oil is
(Additional reporting by Marius Zaharia; Editing by Catherine