GLOBAL MARKETS-Risk appetite flickers in Europe, ECB speculation holds down euro

* Europe shares higher after gains in Japan, China * Dollar/yen hits seven-month high, euro at new one-year low * U.S. ISM manufacturing eyed for more dollar cues * Palladium near 13 1/2-year high on Ukraine conflict By Marc Jones LONDON, Sept 2 (Reuters) - Risk appetite flickered back into life in financial markets on Tuesday with the dollar and European and Japanese shares rising while safe-haven bonds, the yen and gold all took a step back. The dollar rose to its high