* World stocks hit a new 12-month high
* Dollar at 14-month low against major currencies
* Q3 results continue to beat expectations
By Dominic Lau
LONDON, Oct 20 (Reuters) - World stocks hit a new 12-month
high on Tuesday, powered by strong results from Apple Inc
<AAPL.O> and Texas Instruments <TXN.N> and helping to push the
dollar to a new 14-month low against a basket of currencies.
The strength in global stocks, up 75 percent from
crisis-lows in March, boosted optimism on corporate earnings and
the global recovery, encouraging traders to sell dollars <.DXY>
for higher-yielding currencies.
Crude prices meanwhile eased from their earlier highs but
gold prices firmed and safe-haven government bonds were steady.
The MSCI All-Country World Index <.MIWD00000PUS> was up 0.2
percent at 300.10 points, after hitting 300.77 -- its highest
level since late September 2008. Emerging equities <.MSCIEF>
rose 0.3 percent, hitting a new 14-month high.
Apple's profits and sales beat forecasts on the back of
record sales of iPhones and Mac computers, extending a run of
strong results last week for leading U.S. banks and companies.
Japan's Nikkei <> gained 1 percent while U.S. stock
index futures <DJc1> <SPc1> <NDc1> were up 0.2-0.7 percent,
pointing to a higher start for Wall Street. The FTSEurofirst 300
<> eased 0.1 percent after Monday's sharp gains.
"It is what I call 'steady as she goes'. Stay in the asset
classes that are doing well for the moment. Don't get carry
away," said Michael Dicks, head of research and investment
strategy at Barclays Wealth.
"Obviously next year ... you have got a fair amount of time
to look at how policymakers deliver their 2010 and talking about
2011 budgets. That's probably going to be the key how quickly
they decide to start tightening up in countries that have been
performing well."
U.S. housing and inflation data are due later on Tuesday as
well as results from Caterpillar <CAT.N>.
DOLLAR WEAK
The dollar fell 0.3 percent to 90.35 yen <JPY=>, while the
euro <EUR=> was at $1.4973 after touching its highest level in
14 months at $1.4994 earlier -- a tad short of $1.5000.
The U.S. currency has been under sustained pressure this
year due to expectations for low U.S. interest rates and
questions about its status as the world's reserve currency.
Comments on the euro's strength from an adviser to French
Presient Nicolas Sarkozy and a Market News International report
quoting an unnamed Chinese government source calling for a
reversal of the dollar's slide had limited impact.
But in Asia, the yuan jumped against the dollar in benchmark
offshore non-deliverable forwards (NDFs) as overseas speculators
bet on long-term appreciation of China's currency. The move
implied a 12-month appreciation versus the dollar of 4.55
percent, the most since August 2008.
Yields on benchmark 10-year U.S. Treasuries <US10YT=RR> were
down 1 basis point at 3.378 percent, and those on the 10-year
euro zone Bund <EU10YT=RR> were down 1 basis point at 3.280
percent.
Crude futures <CLc1> eased after rallying to a one-year high
above $80 a barrel on a weak dollar, while gold <XAU=> put on
0.2 percent, close to last week's record highs.
Societe Generale said in a note this week that investors
tended to increase their positions in the best performers and
sell the worst performers as they try to "window dress" results
to look good before the end of the accounting year.
"It is highly probable, all else being equal, that risky
assets will do well by year-end," the bank said.
(Additional reporting by Jamie McGeever; editing by Patrick
Graham)
