NEW YORK - Global equity markets shot higher on Friday as renewed optimism of a quick economic recovery spurred risk appetite and reduced demand for safe-haven bonds.

The dollar slid and the euro rose even as little progress was made on a 750 billion euro recovery fund at a European Union summit to discuss the stimulus and the European Central Bank chief warned that the region's economy was in a "dramatic fall."

Stocks in Europe rose almost 1 percent and Wall Street opened sharply higher, with the Nasdaq surging above the 10,000 mark again, on track to set a record closing high. The tech-heavy index was about 0.3 percent off its all-time peak.

The US economy is re-opening despite a rising number of COVID-19 cases and some states warning they could re-impose shutdowns, noted Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.

"There's a degree of caution and there will be a return to a normal economic environment sooner rather than later, by getting in front of the pandemic," Ghriskey said. "There will be renewed outbreaks and you could see shutdowns again, but it seems like the government is prepared for this second wave."

MSCI's gauge of stocks across the globe gained 0.54 percent while the pan-European STOXX 600 index rose 0.68 percent. Emerging market stocks rose 0.70 percent.

On Wall Street, the Dow Jones Industrial Average rose 139.82 points, or 0.54 percent, 199.79 points, or 0.77 percent, to 26,219.92. The S&P 500 gained 19.08 points, or 0.61 percent, to 3,134.42 and the Nasdaq Composite added 82.37 points, or 0.83 percent, to 10,025.42.

Investors are tugged in opposite directions by improving economic data and new breakouts of COVID-19 infections, which have caused concerns that the economy may not bounce back as quickly as hoped.

California, North Carolina and a string of US cities have mandated or urged mandatory mask use to contain spiraling coronavirus cases as at least six states set daily records.

The Chinese mainland reported 32 new coronavirus cases as of the end of June 18, 25 of which were reported in Beijing, China's National Health Commission said.

Brent oil rose to above US$42 a barrel on Friday, adding to gains in the previous session, after OPEC producers and allies promised to meet supply cuts and signs of recovering demand, hit by the coronavirus crisis.

Brent was at US$42.73, up 2.94 percent on the day and US crude rose 3.78 percent to US$40.31 per barrel.

ECB President Christine Lagarde called on EU leaders to agree on their recovery plan quickly, diplomatic sources and officials said. The leaders are divided over its final size but hope a deal will be struck in July.

The dollar slipped overnight. The dollar index rose 0.138 percent, with the euro down 0.12 percent to US$1.1189 and the Japanese yen up 0.01 percent versus the greenback at 106.96 per dollar.

Demand for safe German government debt was little changed, with the benchmark 10-year Bund yield at -0.411 percent.

Benchmark 10-year notes rose 2.8 basis points to yield 0.7118 percent.

Spot gold added 0.9 percent to US$1,737.93 an ounce.