GLOBAL MARKETS-U.S. data bolsters stocks, hits bonds

* Stocks gain, U.S. Treasuries fall on economic data

* Rise in U.S. equities reverses Europe stocks' losses

* Oil up in anticipation of rising energy demand

By Chris Reese

NEW YORK, June 18 (Reuters) - Stocks rose and U.S. government bonds fell on Thursday on stronger-than-expected U.S. jobless claims data and a sign of improving business conditions, which helped European stocks recover from losses.

The data, seen as a sign the U.S. recession might be reaching bottom, pushed the U.S. dollar down against the euro. In the darkest days of the economic crisis, the dollar rallied in safe-haven buying, but recent signs of recovery have tended to reverse those flows.

Oil prices rose in choppy trade as the data raised hopes for economic recovery and an increase in demand for energy.

The government reports showed the number of people staying on U.S. jobless benefits after collecting an initial week of aid fell for the first time since January, while manufacturing in the U.S. Mid-Atlantic area contracted in June much less severely than expected. For details see [ID:nN18379372].

"We received a solid round of U.S. economic reports for the day," said Michael Englund, chief economist at Action Economics in Boulder, Colorado.