(Refiles to clarify first two paragraphs.)
* World stocks reach highest since early December
* Oil prices hit five-month high, lift sentiment
* No ECB action expected at meeting
* Commodities broadly higher, Bund yields at one-month high
* Russian shares climb to record highs
By Dhara Ranasinghe
LONDON, April 21 (Reuters) - World stock markets reached
their highest level in almost five months on Thursday as higher
oil prices improved risk appetite and the euro steadied before a
European Central Bank meeting.
However, European shares slipped lower as attention turned
to the ECB. The bank is expected to keep rates at record lows
but may signal a willingness to ease policy again to boost
inflation.
The FTSEurofirst 300 index .FTEU3 of leading European
shares briefly reached its highest level since early January,
before falling. U.S. stock futures were little changed ESc1
1YMc1 , indicating a flat open for Wall Street shares.
"We've had a great run-up in the last few weeks and we're
now just starting to pause for a bit on the markets," said Terry
Torrison, managing director at Monaco-based McLaren Securities.
Still, the tone in global markets remained upbeat. Oil
prices LCOc1 rose to a five-month high as the International
Energy Agency said that 2016 would see the biggest drop in
non-OPEC production in a generation.
U.S. crude futures CLc1 were last up 6 cents at $44.23 a
barrel. Crude has now gained 70 percent in value since the lows
reached in January and February.
"It looks like the trough in oil is now behind us," said
Chris Scicluna, head of economic research at Daiwa Capital
Markets.
Oil's rally resonated across world markets, with emerging
market stocks rising to 5 1/2-month highs and Russian shares
racing to record highs
In Asia, MSCI's broadest index of Asia-Pacific shares
outside Japan .MIAPJ0000PUS rose 0.8 percent, brushing its
highest since early November. Japan's Nikkei .N225 gained 2.6
percent and the MSCI world equity index .MIWD00000PUS rose to
its highest level since December.
Other commodities also gained. Copper CMCU3 rose as high
as $5,029.50 a tonne, its highest in a month. Silver XAG= hit
an 11-month high of $17.595 per ounce.
The Thomson Reuters Core Commodity Index .TRJCRB rose
above its March peak to its highest level since early December.
German 10-year Bund yields DE10YT=TWEB rose above 0.20
percent for the first time in a month as the jump in oil prices
supported the outlook for inflation and investor appetite for
riskier assets. LOOMS
The ECB is widely expected to refrain from further action
after delivering a comprehensive stimulus package in March. But
ECB President Mario Draghi is likely to reiterate the case for
ultra-loose monetary policy, after German officials disputed the
ECB approach to the euro zone's economic malaise
In London trade, the euro was flat at $1.1298 EUR= , well
below Wednesday's peak of $1.1388. Against the yen, it was
little changed at 123.97 EURJPY= .
"The FX market is likely to pay particular attention today
to what Draghi has to say about further rate cuts," said Lutz
Karpowitz, currency strategist at Commerzbank (DE:CBKG).
"Should he be any more outspoken on the matter than last
time round, euro/dollar is likely to ease further. I would
certainly steer clear of long positions."
Elsewhere, commodity-linked currencies held firm. The
Australian dollar AUD=D4 was at $0.7813, after rising to an
11-month high of a $0.7830 on Wednesday.
The Swedish crown gained to its highest level against the
euro EURSEK= since March 2015 after the Riksbank kept its key
interest rate unchanged at -0.5 percent, as expected, and
extended its bond-buying programme.