* U.S. private sector job creation jumps in November
* Euro bounces off 10-week lows against U.S. dollar
* Chinese factory report supports global growth bets
* Indexes up: Dow 1.7 pct, S&P 1.6 pct, Nasdaq 1.9 pct
* For up-to-the-minute market news see [STXNEWS/US] (Updates to morning trading)
By Rodrigo Campos
NEW YORK, Dec 1 (Reuters) - U.S. stocks rallied on Wednesday as upbeat U.S. and Chinese data lifted investor confidence about a global economic recovery.
The U.S. private sector posted its largest jobs gain in three years and manufacturing grew for a 16th month running, while China posted strong factory production data. For details see [ID:nN01127417] and [ID:nTOE6B001C]
"Manufacturing data shows a continuation of the positive trend and new orders were pretty strong and employment has been improving," said Zahid Siddique, associate portfolio manager at Gabelli Equity Trust in Rye, New York, noting overseas data was also supportive of stocks.
"Overall, the combination of that data is driving the market higher," he said.
The Dow Jones industrial average <.DJI> jumped 186.71 points, or 1.70 percent, to 11,192.73. The Standard & Poor's 500 Index <.SPX> rose 19.03 points, or 1.61 percent, to 1,199.58. The Nasdaq Composite Index <.IXIC> added 46.57 points, or 1.86 percent, to 2,544.80.
The S&P 500 <.SPX> traded above its 14-day moving average for the first time in eleven sessions and was having its best day in almost a month, but still faced strong resistance at 1,200.
"If we close above 1,200, the next stop is 1,225 to 1,230," said Tom Alexander, head of Alexander Trading in Savannah, Georgia.
That target area coincides with a recent two-year high and the 61.8 percent Fibonacci retracement of the benchmark's slide from October 2007 to March 2009, a key technical indicator.
United Technologies Inc
The S&P energy index <.GSPE> rose 2.2 percent, leading gains on the S&P 500 on expectations that a stronger Chinese economy would mean increased demand for energy.
Further supporting stocks, the euro rose against the U.S. dollar as pressure on the euro zone's higher-yielding sovereign debt eased as traders bet the European Central Bank (ECB) would step up its bond buying program. In recent weeks, the euro and U.S. stocks have traded in sync with each other.
"There's been a bit of a recovery trade out of Europe that remains fluid because of this speculation over what the ECB may or may not do," said John Brady, senior vice president at MF Global in Chicago.
In a development closely watched by investors, U.S. President Barack Obama named Treasury Secretary Tim Geithner and budget director Jack Lew to work with congressional Republicans and Democrats to break a logjam over the fate of Bush-era tax cuts. [ID:nN30268902] (Reporting by Rodrigo Campos; editing by Jeffrey Benkoe)