MSCI world equity index up 0.7 pct at 224.39… Euro rallies on doubts over deep rate cuts… Oil jumps 5 pct; government bonds fall

Equities surged around the world on Monday with investors taking heart from a likely rescue plan for U.S. automakers, a proposed U.S. jobs plan and more government stimulus measures to reverse economic decline.

Global stocks decline as gloomy economic news flow resumes… Euro zone services activity falls to a fresh record low… Central banks expected to cut rates aggressively… MSCI World stock index down 0.4 percent

Oil bounces slightly after fall to new 3-1/2 year lows… European shares up after heavy losses in Asia, U.S…. U.S. crude stocks likely rose for third time last week

FTSEurofirst 300 up 1.1 pct on the day, up 13 pct on week… Index lost 7 pct in Nov, ninth month of losses in 2008… Cyclicals hammered; defensive pharmas surge

Dollar rises vs euro as risk aversion persists…  Yen supported on persistent global economy fears…  Euro zone inflation plunges

Citi merger talk, equity rebound prompt FX turnaround…  Sterling also rises as risk aversion cools… Weak euro zone PMI a reminder of economic distress