GLOBAL MARKETS-Stock markets and U.S. dollar both climb as "risk-on" mode dominates

* Friday's strong U.S (Other OTC: UBGXF - news) . data drives broad equity rally

* Bank sector bounce underpins European gains

* Yen and gold under pressure on markets

By Sudip Kar-Gupta

LONDON, Aug 8 (Reuters) - Stock markets rose on Monday and the dollar extended gains as risk appetite revived following strong U.S. job figures that bolstered expectations of faster growth in the world's biggest economy.

The MSCI All-Country World index rose 0.4 percent, while the pan-European STOXX 600 index gained 0.2 percent.

European stock markets were supported by a broad equity rally on Friday's payrolls data, and as Europe's under-pressure banks extended gains from lows reached at the end of last month after industry stress-tests showed many of them with relatively weak balance sheets.

U.S. equity futures also moved higher, with Dow Jones futures climbing 0.2 percent..

The dollar edged up against a basket of six major currencies , while euro zone bond yields climbed as the U.S. numbers also drove a sell-off in fixed income markets.

"The dollar took a big boost from the jobs numbers ... and there is a part of the market that expect that to follow through into retail sales on Friday," said Citi strategist Richard Cochinos. "But really it's August trading at the moment and we're struggling to find clear drivers."

The MSCI Emerging Market index advanced 1 percent.

Oil prices rose, lifted by reports of renewed talks among some OPEC state to rein in output, a proposal that non-OPEC producer Russia was quick to dismiss.

Gold (Other OTC: GDCWF - news) prices slipped, hitting a one-week low.

With (Other OTC: WWTH - news) stocks back in fashion, Zurich-based ACIES Asset Management's chief investment officer Andreas Clenow said U.S. equity markets were the preferred choice for many.

"The U.S. markets look pretty healthy. We keeping making record highs in the U.S., but the European stock markets look much more sluggish," he said. (Additional reporting by Saikat Chatterjee in Hong Kong, and Patrick Graham and Dhara Ranasinghe in London; editing by John Stonestreet)