Global stocks surge, dollar slips after G20

By Herbert Lash

NEW YORK (Reuters) - Global stocks surged on Monday and gold hit a new record above $1,110 an ounce, after the Group of 20 finance ministers pledged to keep economic stimulus programs in place until a recovery was assured.

The U.S. dollar fell to a 15-month low against a basket of major currencies, lifting gold prices and the euro above $1.50, after G20 policy-makers on Saturday underscored the perception global interest rates will remain low for some time.

The message investors took from the G20 meeting in Scotland was that low rates will provide them access to cheap money with which to buy riskier assets like stocks, oil and gold.

In the U.S., the Dow Jones Industrial Average rose to a 13-month high as U.S. stocks jumped 2.0 percent or more and helped dull the allure of government debt.

An index of the U.S. dollar .DXY against six major currencies fell to its lowest since August 2008 and was headed for its biggest single-day decline in more than three months.

"Central banks around the world are continuing to prop up the economy and support risk taking. There's very little regard for valuation," said Jack Ablin, chief investment officer of Harris Private Bank in Chicago.

"It looks to me like a pure risk rally and it is consistent with the G20 comments."

The MSCI all-country world index .MIWD00000PUS of global stocks rose 2.3 percent.