* MSCI world equity index up 0.7 pct at 289.46
* Strong U.S./European earnings boost risk appetite
* Oil firmer, euro maintain most gains after rally
By Natsuko Waki
LONDON, Feb 17 (Reuters) - World stocks rose on Wednesday
and the euro held on to most of the previous day's sharp gains
as strong company earnings from both sides of the Atlantic
shifted focus away from concerns about euro zone debt.
French bank BNP Paribas <BNPP.PA> rose more than 3 percent
after it took fewer bad debt provisions than expected in the
fourth quarter, helping it beat forecasts. []
Wall Street rallied on Tuesday after a strong revenue report
from drugmaker Merck & Co <MRK.N> and a firmer regional
manufacturing survey.
Gains in world stocks rekindled investor risk appetite which
had taken a hit from concerns about the swollen debt of Greece
and other euro zone countries. European ministers told Athens on
Tuesday it may need to take further steps to bring its debt
under control and calm "irrational" financial markets.
"There was a follow through this morning from the positive
close that we saw in the United States. BNP Paribas results were
good ... and that set quite a positive tone for markets early
on," said Nick Serff, market strategist at City Index.
MSCI world equity index <.MIWD00000PUS> rose 0.8 percent
while the FTSEurofirst 300 index <> gained nearly 1
percent. U.S. stock futures <SPc1> rose 0.3 percent, pointing to
a firmer open on Wall Street.
According to Thomson Reuters data, quarterly earnings growth
for S&P 500 firms for the fourth quarter stood at 211.3 percent.
Of 76 percent of S&P 500 firms that have reported their results
so far, 72 percent have beaten their expectations.
"Economic data continues to suggest that the recovery should
be sustainable. Business and consumer confidence levels have
been increasing," Bob Doll, global chief investment officer of
equities for BlackRock, said in a note.
"Despite all of the macro uncertainty, corporate earnings
continue to be impressive."
Emerging stocks <.MSCIEF> gained 0.8 percent.
U.S. crude oil <CLc1> rose 0.5 percent to $77.38 a barrel.
The Bund future <FGBLc1> rose 14 ticks.
The euro fell 0.2 percent to $1.3733 <EUR=>, having made its
biggest one-day gain since July on Tuesday.
"The view that the worst-case scenario in Greece is unlikely
to unfold has put a floor under the euro, and that has put a
squeeze on some long dollar positions," said Daragh Maher,
senior currency strategist at Credit Agricole CIB in London.
"Still, at the end of the day, the mood on the euro isn't
fantastic, No one thinks the Greece situation has gone away."
The dollar <.DXY> rose 0.1 percent against a basket of major
currencies to hit its strongest in almost two weeks earlier.
(Additional reporting by Harpreet Bhal and Naomi Tajitsu,
editing by Mike Peacock)
