GLOBAL MARKETS - European Shares Rally, Eyeing ECB Rate Move

GLOBAL MARKET - NEW YORK/LONDON June 3 (Reuters) - World stocks steadied on Monday despite declines on Wall Street following data that showed unexpected weakness in U.S. manufacturing activity, adding to uncertainty about the U.S. interest rate outlook.

The cloudy outlook for U.S. rates contrasts with Europe, where investors are looking forward to a 25-basis-point interest rate cut by the European Central Bank on Thursday, which would bring the benchmark rate down to 3.75%.