GLOBAL MARKETS-Crude jumps on U.S. output forecast; stocks mixed

* Diminishing U.S (Other OTC: UBGXF - news) . rate hike expectations weigh on dollar

* Treasury debt prices rise on expected delayed Fed rate

hike

* Brent oil edges above $50 a barrel

(Adds U.S. market open, byline, dateline; previous LONDON)

By Herbert Lash

NEW YORK, Oct (HKSE: 3366-OL.HK - news) 6 (Reuters) - Crude prices jumped more than 4

percent on Tuesday after the United States cut output forecasts,

while global equity markets mostly rose on expectations the

Federal Reserve will not raise interest rates this year.

Helping crude was news that Russia and Saudi Arabia had met

last week and discussed the oil market, and planned to continue

exchanging views on demand, production and shale oil, Russian

Energy Minister Alexander Novak told reporters.

A weakening dollar added support for oil, while the U.S.

Energy Information Administration projected in its monthly

forecast that the country's crude output will fall through

mid-2016.

"The market is possibly moving on speculation that OPEC and

non-OPEC countries will find an agreement to cooperate," said

Carsten Fritsch, senior oil analyst at Commerzbank (Xetra: CBK100 - news) in Frankfurt.

Brent, the global benchmark for crude, rose $2.50 to

$51.75 a barrel. West Texas Intermediate, the U.S. crude

benchmark, rose $2.13 to $48.41.

European shares moved higher, extending strong gains from

the previous session, with expectations the U.S. and European

central banks will maintain equity-friendly monetary policy in

the coming months.

Large volume in the U.S. stock market's rally on Monday

suggests that at least the downside momentum is now broken, said

Bruce Bittles, chief investment strategist at Robert W. Baird &

Co in Sarasota, Florida.

"The markets are playing off the fact that there's a strong

likelihood the market has now made a bottom, and we at some

point will begin a year-end rally," Bittles said.

The pan-European FTSEurofirst 300 closed up a

preliminary 0.75 percent, while MSCI (NYSE: MSCI - news) 's all-country world stock

index rose 0.19 percent, aided by a 1 percent

gain in Tokyo.

An 11-percent surge in DuPont, after CEO Ellen

Kullman said she would step down, helped the Dow inch higher.

The Dow Jones industrial average rose 5.54 points, or

0.03 percent, to 16,781.97. The S&P 500 fell 9.38 points,

or 0.47 percent, to 1,977.67 and the Nasdaq Composite is

lost 51.80 points, or 1.08 percent, to 4,729.46.

The U.S. dollar slipped against major currencies on

continued expectations the Fed will not hike rates this year for

the first time in almost a decade.

Commerce Department data showing the largest expansion in

the U.S. trade deficit in five months in August reinforced

expectations the Fed would delay hiking rates until next year. A

weak U.S. jobs report on Friday has also driven such

expectations.

"People are still very skeptical about the Fed raising rates

this year," said Thierry Albert Wizman, interest rates and

currency strategist at Macquarie Ltd in New York.

The dollar was last down 0.21 percent against the yen at

120.20 yen. The euro was last up 0.72 percent against the dollar

at $1.1265.

U.S. Treasuries prices also gained on the increase in the

U.S. trade deficit, which reinforced the view of slowing global

demand.

Benchmark 10-year Treasuries notes were up 1/32

in price to yield 2.0527 percent.

(Reporting by Herbert Lash; Editing by Nick Zieminski)