GLOBAL MARKETS - Central bank moves boosts stocks, oil trims gains

By Herbert Lash

NEW YORK (Reuters) - The dollar and global stocks gained on Wednesday after U.S. and European central banks again moved to ease persistent credit strains, although a resurgence in oil prices knocked equities off early highs.

Oil rebounded after U.S. government data showed a drop in gasoline stocks last week, surprising analysts who had expected an increase.

A surprise gain in U.S. private sector payroll totals pushed U.S. Treasury debt prices lower. The prospect of an increased supply of longer-maturity debt and the extra liquidity provisions for banks also helped push bond prices down.

But euro zone government bonds rose, with 10-year futures reaching their highest level in nearly two weeks, on end-of-month buying and weak economic data from the region.

U.S. and European stock markets drew support from the liquidity move by the Federal Reserve, and European and Swiss central banks.

"The Fed has expanded its measures and it signals very clearly that it will do everything to support the financial system," said Rainer Sartoris, an economist at HSBC Trinkaus.

"This has a positive impact on the stock markets. Investors are now hoping again for more stability," he added.

Bank shares rallied on the move, although they pared initial strong gains.