(Adds gold, oil settlement prices)
* U.S., European PMI data beat consensus
* White House assures U.S.-China trade deal still intact
* Stocks, oil, gold climb; dollar dips
* World FX rates in 2020 http://tmsnrt.rs/2egbfVh
By Stephen Culp
NEW YORK, June 23 (Reuters) - The dollar eased and global equity markets surged on Tuesday after reassurances on the U.S.-Sino trade deal and upbeat economic data from the United States and Europe brightened the prospect of a swift economic recovery.
The euro hit a one-week high as higher-risk currencies, including the Australian dollar, rose after U.S. officials reaffirmed the trade deal following remarks by White House trade adviser Peter Navarro who said late Monday the pact was "over."
Beijing has actually stepped forward in a number of areas in a constructive way, Larry Kudlow, the director of the national economic council, told Fox Business Network. confirmation from the White House that the China trade deal remains in place gave a lot of confidence to the market," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.
Also driving "risk-on" sentiment was data showing sales of new U.S. single-family homes increased more than expected in May and a slower-than-expected contraction of U.S. and European business activity last month. Markit's euro zone Flash Composite Purchasing Managers' Index (PMI), seen as a good gauge of economic health, recovered to 47.5 from May's 31.9, moving closer to the 50 mark separating growth from contraction. In April it was a record low 13.6.
The U.S. PMI reading and other IHS Markit indicators were better-than expected, driving European bourses to close more than 1% higher, with Germany's DAX index .GDAXI topping 2%. Wirecard WDIG.DE climbed 18.8% after the arrest of its former chief executive on suspicion of falsifying accounts. PMIs overseas were very strong and broad. There's a lot of pent up demand, there's a lot of cash and cash equivalents sloshing around looking for a home," Ghriskey said.
MSCI's gauge of stocks across the globe .MIWD00000PUS gained 1.08% and its emerging market index rose 1.50%.
In Europe, the broad pan-regional STOXX 600 index .STOXX closed up 1.3%. Wall Street also soared, with the Nasdaq setting an all-time peak as it headed to a fresh closing high.
The Dow Jones Industrial Average .DJI rose 199.67 points, or 0.77%, to 26,224.63. The S&P 500 .SPX gained 25.34 points, or 0.81%, to 3,143.2 and the Nasdaq Composite .IXIC added 123.82 points, or 1.23%, to 10,180.29.
The weaker dollar, a sign of increased risk appetite, lifted gold prices to their highest since October 2012 as investors eyed central bank monetary stimulus aimed at bolstering the recovery in the midst of still rising coronavirus cases.
"The tsunami of stimulus coming in from everywhere is not only inflationary but also painting a weaker picture for the economy and making gold look attractive," said Edward Meir, analyst at ED&F Man Capital Markets.
The upbeat economic data and trade deal affirmation boosted longer-term U.S. Treasury yields, while the closely watched spread between 2- and 10-year yields, considered a barometer of economic expectations, inched up to 53 basis points. 10-year notes US10YT=RR rose 0.6 basis points to yield 0.7102%.
Safe-haven German 10-year bond yields rose 3 basis points to -0.41%, moving further away from a near one-month low overnight after the trade remarks shocked markets.
The dollar index .DXY fell 0.42%, with the euro EUR= up 0.49% to $1.1313. The Japanese yen JPY= strengthened 0.36% versus the greenback at 106.51 per dollar.
Brent futures LCOcv1 settled down 45 cents at $42.63 a barrel, while U.S. crude CLcv1 fell 36 cents to settle at $40.37 a barrel.
U.S. gold futures GCv1 settled up 0.9% at $1,782 per ounce.
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http://tmsnrt.rs/2jvdmXl Global currencies vs. dollar
http://tmsnrt.rs/2egbfVh Emerging markets
http://tmsnrt.rs/2ihRugV MSCI All Country Wolrd Index Market Cap
http://tmsnrt.rs/2EmTD6j Global markets have recovered strongly
https://tmsnrt.rs/2YqlVG9
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