* Euro climbs to as high as $1.3683, dollar weakens
* Stocks extend gains on global growth bets, miners
* U.S. crude oil prices fall more than $1
(Updates with U.S. markets' close, Nikkei futures)
By Walter Brandimarte and Alina Selyukh
NEW YORK, Jan 24 (Reuters) - The euro hit a fresh
two-month high on Monday as hopes for a durable solution to
the euro-zone debt crisis pushed the currency past key
technical levels, while stocks rose on bets of higher growth
in the global economy.
Prices of copper and other metals rose as the optimism
about growth triggered worries about supply constraints,
driving up shares of miners and natural resources companies.
Asian shares headed to a positive start, with Nikkei
futures traded in Chicago <NKH1> up 0.9 percent at 10,415.00.
Speculation that the European Central Bank might raise
interest rates also provided support for the euro <EUR=EBS>,
pushing it as high as $1.3683 on trading platform EBS, a fresh
two-month high against the dollar. It last traded up 0.21
percent at $1.3644.
"They are closer to tightening in the euro zone with a lot
less spare capacity, and it is realistic to expect the ECB to
tighten before the Federal Reserve," said Kathy Lien, director
of research at GFT Forex in New York.
Expectations of higher rates in Europe grew after ECB
chief Jean-Claude Trichet sounded tougher on inflation. For
details, see [].
The European single currency has gained nearly 6 percent
from this year's low as investors grew more confident about
the euro zone's economic prospects.
Some analysts feared, however, that the rally was close to
an end as political turmoil in Ireland was a reminder of the
uncertainties plaguing the most indebted European countries.
[]
"The euro's had a sharp rebound recently, but we think
it's nearing its top in the bigger picture," said Ian
Stannard, senior currency strategist at BNP Paribas.
"It's supported in the near-term by optimism over talks on
the European rescue fund, but political problems in Ireland
and Portugal show there are still lots of factors out there to
hurt the currency," he added.
The U.S. dollar slipped 0.23 percent against a basket of
major currencies, according to the U.S. Dollar Index <.DXY>.
Against the Japanese yen <JPY=>, it fell 0.15 percent to
82.46.
STOCKS EXTEND GAINS
Global equities advanced as U.S. stocks found strength in
large-cap technology and natural resources shares, which were
lifted by bets on global growth prospects and Intel's gains.
The Dow Jones industrial average <> extended its rally
after eight weeks of gains, rising 108.68 points, or 0.92
percent, to end at 11,980.52. The Standard & Poor's 500 Index
<.SPX> advanced 7.49 points, or 0.58 percent, to close at
1,290.84, while the Nasdaq Composite Index <> added 28.01
points, or 1.04 percent, to 2,717.55.
The blue-chip Dow average came close to touching the
psychologically important 12,000 level, with its climb
intraday to a fresh 52-week high at 11,982.94.
Intel Corp <INTC.O> raised its dividend by 15 percent and
authorized another $10 billion for stock repurchases, putting
the spotlight on larger tech companies with slower growth.
Intel's stock closed up 2 percent at $21.24 and buoyed the
major U.S. stock indexes.
Climbing copper prices and tin prices rising to all-time
highs reflected concerns over supply constraints and buoyed
materials companies' stocks. []
"It's very difficult to ignore the positive implications
for earnings in material stocks when the global economy is
gaining traction," said Howard Ward, portfolio manager of the
GAMCO Growth Fund in Rye, New York.
World shares as measured by the MSCI All-Country World
Index <.MIWD00000PUS> rose 0.64 percent, while the
FTSEurofirst 300 index <> of top European shares added
0.25 percent to close at 1,151.18, supported by gains in
mining stocks.
U.S. crude oil prices <CLc1> dropped $1.24, or 1.39
percent, to settle at $87.87 per barrel in choppy trading,
even as heating oil futures were lifted by U.S. cold weather.
Still weighing on oil prices was last week's U.S. data
showing an increase in oil inventories against forecasts for
lower stockpiles.
Investors also were cautious before the U.S. Federal
Reserve's first monetary policy meeting this year on Tuesday
and Wednesday.
Prices of U.S. Treasuries were virtually unchanged as
traders awaited an upcoming supply of debt and the outcome of
the Fed's meeting. The benchmark 10-year note <US10YT=RR> was
up 1/32 in price, with the yield at 3.406 percent.
The Fed is expected to buy $29 billion in U.S. debt,
buying Treasuries on four of five trading days this week. It
will also issue a policy statement on Wednesday after its
meeting -- its first meeting of the year.
(Reporting by Walter Brandimarte and Alina Selyukh;
Additional reporting by Rodrigo Campos, Ellen Freilich,
Wanfeng Zhou and Atul Prakash; Editing by Jan Paschal)
