GLOBAL MARKETS-Oil, stocks rise on encouraging economic data

* Bonds fall as slowing U.S. jobless claims cut safety bid

* Wall St gains as encouraging data offsets retail sales

* Oil jumps 3 pct to over $68 a barrel on U.S. jobs data

* Euro rises vs dollar after ECB leaves rates unchanged (Updates with U.S. markets activity; changes dateline, previous LONDON)

By Herbert Lash

NEW YORK, June 4 (Reuters) - Oil prices rose more than 3 percent and Wall Street advanced on Thursday as hopes that the U.S. economy is on the mend returned to the fore on encouraging news about weekly jobless claims and business productivity.

The strength in U.S. stocks and signs of an improving economy eroded the safe-haven appeal of U.S. government debt, pushing the price of U.S. Treasuries lower.

The euro, meanwhile, rose against the U.S. dollar in volatile trade after the European Central Bank kept a benchmark interest rate unchanged at a record low 1.0 percent.

Gold rose as the dollar gave up gains versus the euro and crude climbed above $68 a barrel, stoking fears of inflation.