Steelmaker ArcelorMittal ISPA

Steelmaker ArcelorMittal (ISPA.AS) rose 6.8 percent andamong miners Rio Tinto (RIO.L) was up 5.8 percent, AngloAmerican (AAL.L) up 6.1 percent and BHP Billiton (BLT.L) put on4.3 percent London copper futures MCU3 rose to a seven-monthhigh. [ID:nSP429585] A 2-percent rise in the price of crude oil CLc1, also to aseven-month high [ID:nSP429646], underpinned energy shares, withTotal (TOTF.PA) up 2.2 percent, Royal Dutch Shell (RDSa.L) 1.7percent higher and StatoilHydro (STL.OL) gaining 2.4 percent. In euro zone data, manufacturing PMI rose to a seventh-monthhigh of 40.7, up from 36.8 in April and just above the flashreading and economists' expectations for it to hit 40.5. AUTOS UP AHEAD OF GM BANKRUPTCY European auto shares also rose, with the DJ Stoxx Europeansector index .SXAP up 4.3 percent, after U.S. governmentofficials said carmaker General Motors Corp GM.N would filefor bankruptcy later on Monday.

[ID:nN01398575] [ID:nCARS1] Peugeot (PEUP.PA) rose 6.9 percent, Renault (RENA.PA) added5.4 percent, Daimler (DAIGn.DE) was up 5.8 percent and BMW(BMWG.DE) gained 3.8 percent -- all outperforming Fiat (FIA.MI),up 0.8 percent, after the Italian carmaker failed to find favourfor its bid for GM's European units. Banks .SX7P added the most points to the European top-300index, with Societe Generale (SOGN.PA) up 3.5 percent,Commerzbank (CBKG.DE) 3.0 percent higher, Banco Santander(SAN.MC) rising 2.7 percent and Royal Bank of Scotland (RBS.L)adding 4.5 percent. Across Europe, with trading volumes reduced by publicholidays in some countries, Britain's FTSE 100 index .FTSE wasup 1.7 percent, Germany's DAX .GDAXI gained 3.1 percent andthe French CAC 40 .FCHI added 2.3 percent Europe's benchmark index rose 0.7 percent last week. In May,it rose 4 percent, a third straight monthly gain and its bestwinning streak in two years S&P Equity Research said the rallylooked unlikely to last. "All risky assets have repriced simultaneously, fromindustrial metals and commodities to equities andcrossover-grade bonds, in this recovery rally.

This is quiteclearly irrational and unsustainable," S&P said in a note Later in the day investors will focus on the U.S. Institutefor Supply Management's (ISM) national factory report for May. The ISM is forecast to rise to 42.2 from 40.1 in April,according to 68 economists polled by Reuters. G7TODAY ING said ISM was probably the best lead indicator for U.S.GDP. "There is a real chance that today's ISM report willproduce a figure consistent with positive growth. However, thereare doubts as to how durable this story will be," ING said. (Editing by Greg Mahlich) Stocks European Markets China Italy.

(Adds Steel firms) BANGKOK, June 1 (Reuters) - Thailand's benchmark stockindex .SETI extended morning gains to stay up 2.44 percent at573.71 points, near an eighth-month high, at 0752 GMT onMonday. Stocks on the move included: STEEL MAKERS JUMP ON HOPES FOR PRICE RECOVERY Expectations for a recovery in steel prices in the secondhalf of 2009 lifted shares in Thai steel firms. Tata Steel TSTH.BK surged 16.6 percent to an eight-monthhigh of 1.68 baht, while steel coil maker G Steel (GSTE.BK)rose 11 percent to a two-week high of 0.40 baht. "In the short term, we see Thai steel shares increasing inline world steel shares," Kim Eng Securities said in a note toclients.

0745 GMT ENERGY STOCKS HIT 8-MONTH HIGH ON OIL PRICES, MERGER TALKS The energy subindex .SETEN reached its highest levelsince September 2008, up 2.4 percent in early trade. Shares inThailand's biggest energy firm, PTT PCL (PTT.BK) rose 2.3percent, PTT Exploration and Production (PTTE.BK) advanced 3.1percent and top coal miner Banpu PCL (BANP.BK) added 4.1percent. Among other PTT subsidiaries, top refiner Thai Oil TOP.BKwas up 1.8 percent, PTT Aromatics and Refining PTTAR.BKclimbed 2.0 percent, IRPC IRPC.BK rose 1.61 percent and PTTChemical PTTC.BK edged up nearly 1.0 percent. The Bangkok Post reported on Monday that PTT aimed tofinalise plans to consolidate its four subsidiaries by October,with the new structure to take effect from 2010. 0449 GMT CONSTRUCTION FIRMS UP AHEAD OF COURT RULING Construction shares rose after Deputy Prime MinisterKorbsak Sabhavasu told the Bangkok Post the government's secondeconomic stimulus package was on track for October.