Stocks rise, led by miners, oil producers
Dollar sags for a second day after drop in manufacturing
Oil heads for biggest twoday jump in a year

LONDON, April 4 Reuters Global stocks rose in cautious trade on Tuesday as investors grappled with the possibility of a flareup in inflation due to the OPEC group39;s surprise output target cut, while the dollar dipped after weak U.S. manufacturing data the previous day.

An announcement on Sunday of an output target cut by the Organization of the Petroleum Exporting Countries OPEC and its partners, known as OPEC, boosted oil prices and complicated the inflation outlook. Brent crude was last up 0.95 at 85.72 a barrel, set for its biggest twoday rally since last April, with a gain of 7.5 over Monday and Tuesday.

Investors were also assessing Monday39;s survey of U.S. manufacturing activity from the Institute for Supply Management, which in March slumped to a near threeyear low as new orders plunged, and analysts said tighter credit conditions could choke off more activity.

In Europe, the STOXX 600 rose 0.6, led by gains Glencore, whose bid for Teck Resources was rebuffed by the Canadian copper miner the day before, while financial shares rallied, led by Investec, which sold its UK wealth management unit to Rathbones.

Meanwhile, U.S. stock futures , pointed to a strong start on Wall Street later, rising 0.40.6, while the MSCI AllWorld index rose 0.1.

The decision by OPEC to catch the markets wrongfooted by announcing…