GLOBAL MARKETS-Stocks rally as global selloff abates, bonds fall

* European shares surge in biggest percentage gain in 2 years * Corporate earnings, fresh data spur stocks on Wall Street * Oil climbs, bonds fall (Adds oil settlement prices) By Herbert Lash NEW YORK, Oct 17 (Reuters) - World equity markets rallied, with European stocks gaining the most in more than two years, and bond prices fell on Friday as investors poured back into beaten-down markets on solid U.S. corporate earnings and rising consumer sentiment. Wall Street followed