GLOBAL MARKETS-Global stocks, commodities jump on strong data

* Global stocks jump as U.S. data underpins recovery hopes

* Oil edges to near $72 a barrel as U.S. stockpiles fall

* U.S. dollar slips to 1-year low against currency basket

* Strong economic data kicks government bond prices lower (Updates with U.S. markets, changes byline, dateline; previous LONDON)

By Herbert Lash

NEW YORK, Sept 16 (Reuters) - Global stock and commodity prices jumped while the U.S. dollar slumped to a one-year low on Wednesday as fresh evidence of economic recovery boosted investors' appetite for risk.

Most prices for U.S. and euro zone government debt fell after the second day of surprisingly strong U.S. economic data fueled expectations of a robust recovery from the worst global downturn since World War Two. For details see [ID:N16128088].

Oil rose toward $72 a barrel after data showed U.S. crude stockpiles fell more than expected last week, but higher inventories of gasoline and winter fuel capped gains. [ID:nN16128088]

U.S. gold futures soared to highs last seen in July 2008 and copper climbed more than 3 percent, helped by the sinking dollar and strong U.S. economic news.

The main FTSEurofirst 300 index closing above the 1,000 mark for the first time in more than 11 months, and the euro rallied to a one-year high against the dollar, an extension of the negative sentiment toward the U.S. currency.

"The consensus is clearly bullish, it's difficult to find anyone bearish any more which is a danger sign," said Jesper Dannesboe, senior commodity strategist at Societe Generale.

An increase in U.S. industrial output and a pickup in mergers and acquisitions activity added to a view that the economy is on the road to recovery.

U.S. and European stocks rose more than 1 percent, as did equity markets in Asia, where stocks rose on Tuesday's U.S. retail sales report and remarks by Federal Reserve Chairman Ben Bernanke that the U.S. recession was probably over.

U.S. industrial production rose for a second consecutive month in August, while higher gasoline costs pushed up U.S. consumer prices last month. Economists said the risk of inflation in the United States remained low. [ID:nN16118540]

"This is a shot in the arm for recovery. This is what we're looking for," Jack Ablin, chief investment officer at Harris Private Bank in Chicago, said about industrial production.

"We're looking for solid evidence -- not just stimulus -- the economy is recovering and this is really the first piece of evidence that needs to fall into place."

Shortly after 1 p.m. (1700 GMT), the Dow Jones industrial average <.DJI> was up 76.55 points, or 0.79 percent, at 9,759.96. The Standard & Poor's 500 Index <.SPX> was up 11.71 points, or 1.11 percent, at 1,064.34. The Nasdaq Composite Index <.IXIC> was up 20.23 points, or 0.96 percent, at 2,122.87.

The FTSEurofirst 300 index <.FTEU3>, led by heavyweight banks and commodity stocks, closed up 1.39 percent at 1,006.15, rising for the eighth session out of the past nine.

Commodity stocks, a beneficiary of economic recovery, were in favor. Oil major BP added 0.7 percent, while miner BHP Billiton advanced 3.2 percent.

"The real question is what happens when we pull away stimulus, which we will at some point. Short term, we could still see strong momentum in the equity market," said Michala Marcussen, head of strategy and economic research at Societe Generale Asset Management.

The dollar fell as its attractiveness as a safe haven has diminished as the view on the global economy improved. That has helped bolster most higher yielding currencies.

The ICE Futures U.S. dollar index, which tracks the greenback versus a basket of six other major currencies, slid to a fresh low of almost one year at 76.151 <.DXY>.

The economic data cast some doubt on a widely held view that the Fed would be able to keep interest rates low for a long time as the economy recovers.

"These are all signs of the economy turning around. This takes away pressure to keep rates low," said James Caron, head of global rates research at Morgan Stanley in New York.

Two-year notes , which respond to changing views on Fed monetary policy, were down 2/32 in price to yield 0.97 percent. Five-year notes fell 3/32 to yield 2.42 percent.

U.S. crude was 85 cents higher at $71.78 a barrel.

The December gold contract firmed $11.20 to $1,017.50 an ounce in New York.

Most major Asian equity markets gained 1 percent or more after Tuesday's U.S. retail sales report. The MSCI index of Asia-Pacific shares <.MIAPJ0000PUS> excluding Japan rose 2.6 percent to its highest this year.

Japan's benchmark Nikkei <.N225> rose 0.5 percent. (Reporting by Edward Krudy, Nick Olivari and Burton Frierson in New York and Chris Baldwin, Jessica Mortimer and Dominic Lau in London; Writing by Herbert Lash; Editing by James Dalgleish)