(Updates to U.S. close)
* U.S. stock indices close higher
* European shares close higher
* Gold eases, crude futures firm
* 10-year U.S. Treasury yields rise
* Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
By Matt Scuffham and Dhara Ranasinghe
NEW YORK/LONDON, Nov 29 (Reuters) - A semblance of calm
returned to world markets on Monday as investors waited for more
details to assess the severity of the Omicron coronavirus
variant on the world economy, allowing battered stocks and oil
prices to rebound.
Global stocks rallied, oil prices bounced and safe-haven
bonds lost ground as markets latched onto hopes the new variant
would prove milder than initially feared.
The Dow Jones Industrial Average rose 236.6 points,
or 0.68%, to 35,135.94; the S&P 500 gained 60.61 points,
or 1.32%, at 4,655.23; and the Nasdaq Composite added
291.18 points, or 1.88%, at 15,782.83.
The pan-European STOXX 600 ended up 0.7%, logging
its best day in a month and recovering some of Friday's 3.7%
slump triggered by concerns around the newly discovered variant.
MSCI's gauge of stocks across the globe
gained 0.67%.
News of the variant triggered alarm and a sell-off on Friday
that wiped roughly $2 trillion off the value of global stocks
as countries imposed new restrictions for fear the variant could
resist vaccinations and upend a nascent economic reopening after
a two-year global pandemic.
Omicron, detected in South Africa last week, has been found
as far as Canada and Australia. The World Health Organisation
said on Monday the heavily mutated variant poses a very high
risk of infection surges.
Still, investors drew comfort from signs that its impact
might not be as grave as feared. In South Africa a top
infectious disease expert said existing COVID-19 vaccines are
probably effective at preventing severe disease and
hospitalisation.
"Right now the market is reacting positively to statements
that this variant is not going to be a major issue but there
still remains a fair amount of concern," said Tim Ghriskey,
chief investment strategist at Inverness Counsel in New York.
A South African doctor who was one of the first to suspect a
new strain said on Sunday patients so far appeared to have mild
symptoms.
"It was reported the new strain of the virus is 'unusual but
mild' and that seems to be the driving force behind the rally in
stocks today," said David Madden, market analyst at Equiti
Capital.
MSCI's broadest index of Asia-Pacific shares outside Japan
eased 0.4%, but found support ahead of its 2021
low. Japan's blue-chip Nikkei fell 1.6% as the country
moved to bar foreigners to head off the Omicron strain.
Oil prices rallied, after plunging more than 10% on Friday
in their biggest one-day drop since April 2020.
U.S. crude futures settled at $69.95 per barrel, up
2.6%. Brent futures settled at $73.44 per barrel, up 1%.
Speculation that oil producing group OPEC and its allies,
known as OPEC+, may pause an output increase in response to the
spread of Omicron aided the oil price rebound.
SHIFTING EXPECTATIONS
European Central Bank policymakers sought to reassure
investors rattled by the new variant, arguing that the euro
zone's economy had learned to cope with successive waves of the
pandemic.
This encouraged a move out of safe-haven bond markets, which
had rallied on Friday as investors priced in the risk of a
slower start to rate hikes by the U.S. Federal Reserve, and less
tightening by some other central banks.
Benchmark 10-year notes last fell 9/32 in price
to yield 1.5141%, from 1.485% late on Friday day.
European sovereign bond yields rose ,
with latest inflation numbers highlighting the challenges ahead
for the ECB.
German inflation is set to surpass the 5% threshold in
November for the first time in nearly three decades, regional
data from several states suggested on Monday.
Gold prices eased, resuming a broad decline from the
previous week, as the dollar firmed and risk sentiment
recovered.
U.S. gold futures settled 0.2% lower at $1,782.30.
The dollar index rose 0.07%, with the euro
down 0.32% to $1.1281.
(Additional reporting by Wayne Cole in Sydney; Graphics by
Danilo Masoni and Sujata Rao; Editing by Angus MacSwan and
Richard Chang)