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GLOBAL MARKETS-Stocks up on China, US data; oil off after storm

* Data on China's factories, U.S. jobs boost equities

* U.S. Treasuries lower a day before key U.S. payrolls report

* Oil falls on demand fears in wake of Sandy's destruction

NEW YORK, Nov 1 (Reuters) - Stocks on major markets rose on Thursday after data showed China's economy regaining some traction and there were signs of improvement in the U.S. labor market, while oil prices slipped on concern about the impact on demand from the storm in the U.S. Northeast. There was renewed optimism about China, the world's fastest-growing economy, after official and private-sector factory surveys marked gains. China's official Purchasing Managers Index for October showed gains in factory activity for the first time since July. In the United States, payrolls processor ADP reported that private employers added jobs in October at the fastest pace in eight months, a sign of modest healing in the labor market, while other data showed a sharp improvement in consumer confidence. A drop in new claims for jobless benefits last week also was encouraging, though there were mixed signals regarding the health of U.S. manufacturing. ``There is a general trend of things getting more positive, which should help stocks and the economy at large going forward,'' said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland. All three major gauges of U.S. stock activity rose more than 1 percent. In Europe, the FTSE Eurofirst index of top European shares gained 1.2 percent at 1,109.34. MSCI's all-country world equity index gained 0.8 percent to 331.65. The Dow Jones industrial average was up 147.20 points, or 1.12 percent, at 13,243.66. The Standard & Poor's 500 Index was up 15.16 points, or 1.07 percent, at 1,427.32. The Nasdaq Composite Index rose 1.47 percent, or 43.69 points, to 3,020.92. U.S. Treasuries prices fell after the official and private Chinese PMI manufacturing surveys for October showed signs of improvement in China's economy. China's central bank also conducted its largest-ever net fund injection this week. The move signaled its intention to keep money market conditions relatively loose and support lending to the real economy before a once-in-a-decade political transition, starting on Nov. 8 at the 18th Party Congress. ``The main reason Treasuries were down is that the Chinese central bank continues to inject record levels of liquidity into the market and the China PMI was better than expected,'' said Steven Van Order, fixed-income strategist at Calvert Investment Management in Bethesda, Maryland. The benchmark 10-year U.S. Treasury note was down 9/32 in price to yield 1.726 percent. The euro surrendered gains versus the dollar to trade slightly lower. The euro was down 0.12 percent at $1.2942. Brent crude oil futures fell to $108 a barrel as investors analyzed the aftermath of super storm Sandy. The destruction wrought by the storm affected millions of people across the eastern United States and could dampen fuel demand just as the world's largest economy was showing signs of recovery, analysts said. ``Many refineries are still out or with low runs so a build in crude oil inventories is expected next week and a draw on diesel, heating oil with gasoline moving sideways because no cars are moving,'' said Michael Poulsen, oil analyst at Global Risk Management in Copenhagen. Brent crude futures slipped 52 cents to $108.18 a barrel. But in New York, U.S. futures gained on larger-than-expected crude oil stock draws and U.S. manufacturing data. U.S. crude future rose 78 cents to $87.02 a barrel. Crude inventories fell 2.05 million barrels, compared with a forecast build of 1.5 million barrels. Distillate stockpiles slipped less than expected, down by 93,000 barrels. Gasoline inventories rose by 935,0000 barrels, against forecasts for a 200,000 barrel rise.