* Stocks rise on upbeat earning outlooks
* Euro rises vs dollar, doubts remain about debt crisis
* Oil slips on reports of higher OPEC output, pipeline up
* Bonds fall ahead of corporate bond deals
(Updates with U.S. markets close, Nikkei futures)
By Manuela Badawy
NEW YORK, Jan 18 (Reuters) - The euro rose to a one-month
high against the dollar on Tuesday on central bank buying and a
surge in German investor sentiment, while global stocks rose
as positive company earnings outlooks boosted confidence in the
U.S. economic recovery.
The euro rose to a one-month high above $1.34 against the
dollar after Germany's ZEW think tank said about 50 percent of
investors expect the European Central Bank will have to raise
interest rates within the next six months. For details see:
[]
ZEW's monthly index jumped in December to its highest level
since July. []
The euro rose as high as $1.3467 <EUR=EBS> overnight,
though lack of progress at a two-day European debt summit
sparked a retreat and it traded up 0.66 percent at $1.3380.
"There are still fault lines, especially pertaining to
issues about the expansion of the rescue fund," said Simon
Derrick, head of currency research at Bank of New York Mellon.
"But countries like Russia and China need the euro as a
credible alternative currency."
Traders said sovereign buying, including demand from Middle
Eastern accounts on Tuesday, has helped the euro since it fell
to a four-month low beneath $1.29 last week.
Optimism about U.S. company earnings reports have helped
fuel stocks and hopes that the world's largest economy is on
the path of recovery.
The Dow Jones industrial average <> closed 50.55
points, or 0.43 percent, higher at 11,837.93. The Standard &
Poor's 500 Index <.SPX> gained 1.78 points, or 0.14 percent, at
1,295.02. The Nasdaq Composite Index <> rose 10.55 points,
or 0.38 percent, to 2,765.85.
Stocks ended positive after several brokerages raised their
price target on Google <GOOG.O> and Caterpillar Inc <CAT.N>,
offsetting disappointing Citigroup Inc <C.N> results and
worries about another medical leave by Apple Inc <AAPL.O>
Chief Executive Steve Jobs.
World stocks as measured by MSCI <.MIWD00000PUS> advanced
0.63 percent, with the emerging markets index <.MSCIEF> gaining
0.39 percent.
European shares hit their highest close in more than 28
months as euro zone finance ministers inched toward
strengthening a rescue fund and investor confidence grew in
Germany, Europe's largest economy.
The FTSEurofirst 300 <> index of top European shares
ended 0.9 percent higher at 1,167.87 points.
The front month futures contract for the Nikkei 225 stock
index <0#NK:> trading in Chicago rose 25 points to 10,620.
The dollar was down against a basket of major currencies,
with the U.S. Dollar Index <.DXY> off 0.47 percent at 78.966.
Against the Japanese yen, the dollar <JPY=> was down 0.16
percent at 82.59.
Oil <CLc1> fell 0.27 percent to $91.29 per barrel after the
International Energy Agency said members of the Organization of
Petroleum Exporting Countries had been quietly raising output
and the oil producing group insisted the market was amply
supplied. [] Deliveries through a key North
American supply route, the Trans-Alaskan pipeline, commenced.
Brent oil <LCOc1> however, rose closer to $100 a barrel on
concerns about North Sea crude supplies.
U.S. government bond prices fell, in part from hedging
operations at the start of a heavy week of corporate bond
issuance. []
The benchmark 10-year U.S. Treasury note <US10YT=RR> was
down 11/32, its yield at 3.3739 percent. The 2-year U.S.
Treasury note <US2YT=RR> was down 1/32, with the yield at
0.5886 percent. The 30-year U.S. Treasury bond <US30YT=RR> was
down 17/32, the yield at 4.568 percent.
Gold rose for a second day, drawing strength from a weaker
dollar and demand from key Asian consumers. []
Spot gold prices <XAU=> rose to $1,367.60 an ounce.
Copper rose as the dollar fell and European equities surged
on signs of improving economic growth, which suggests better
prospects for industrial metals demand.
(Reporting by Steven C Johnson, Emily Flitter and Chuck
Mikolajczak; Writing by Manuela Badawy; Editing by Kenneth
Barry and Dan Grebler)
