* World stocks up, recover from US earnings disappointments
* Europe rises 1 percent, Japan down 0.2 percent
* Dollar weakens, oil at 12-month high
By Jeremy Gaunt, European Investment Correspondent
LONDON, Oct 19 (Reuters) - World stocks kicked off the week
on a positive note on Monday and the dollar dipped against major
currencies as investors recovered from recent disappointing U.S.
company earnings reports.
Oil was at a 12-month high around $79 a barrel <CLc1>.
MSCI's benchmark all-country world stock index
<.MIWD00000PUS> was up half a percent, not far from last week's
12-month highs. Emerging market shares <.MSCIEF> gained
three-quarters of a percent.
Investors were rattled on Friday by disappointing results
from General Electric <GE.N> and Bank of America <BAC.N>.
Texas Instruments <TXN.N> and Apple <AAPL.O> were due to
report later on Monday.
Thomson Reuter Proprietary Research shows that with around a
quarter of companies in the U.S. S&P 500 <.SPX> index having
reported, 79 percent have beaten analysts expectations.
In a typical quarter, the percentage is 61 percent.
With this as a background, the general mood of investors has
been upbeat about earnings, raising expectations to the point
where some positive results have actually disappointed.
"There is a positive attitude and again we are looking at
more corporate results coming through. There are high
expectations for Apple, the company has had a fantastic
corporate story over the past few years," said Justin Urquhart
Stewart, director at Seven Investment Management.
The pan-European FTSEurofirst 300 <> index was up
about 1 percent.
Earlier, Japan's Nikkei stock average <> fell 0.2
percent, But the benchmark pared the bulk of its losses in late
trade and most other Asian share markets rose.
DANGLING DOLLAR
The euro edged up towards a 14-month high against the
dollar, which remained under the selling pressure that has
accompanied the global stock market rally.
It was dangling just below the psychologically key $1.50
level at $1.493 <EUR=>.
"The trend clearly is for a weaker dollar due to a lack of
interest rate support for the U.S. currency, the U.S. budget
deficit and of reserve bank diversification flows into other
currencies, like the euro," said Marcus Hettinger, global
currency strategist at Credit Suisse in Zurich.
Euro zone government bond prices eased.
The 10-year Bund yield <EU10YT=RR> gained 3 basis points to
3.316 percent, within striking distance of a three-week high of
3.327 percent set last Friday.
(Additional reporting by Joanne Frearson and Naomi Tajitsu,
editing by Mike Peacock)
