* MSCI world equity index down 0.1 pct at 292.49
* U.S. dollar <.DXY> extends slide to 14-mth low, pound down
* Oil <CLc1> rises to 7-week high, commodity currencies up
By Natsuko Waki and Mike Dolan
DUBAI/LONDON, Oct 13 (Reuters) - World stocks stalled at
2009 highs on Tuesday as investors awaited third-quarter U.S.
earnings and as European investor sentiment ebbed in October,
but the U.S. dollar continued its slide to 14-month lows.
As risk-hungry investors sought relatively high-yielding,
commodity-supported currencies such as the Australian and
Canadian dollars, the flipside was more losses for units with
near zero rates such as the dollar <EUR=> and UK pound <=GBP>.
"Risk perception remains an important topic in the absence
of a cyclical trend out of the United States," Michael
Klawitter, currency strategist at Commerzbank in Frankfurt. "The
dollar isn't getting any real meaningful support."
Sterling <EURGBP=> was further undermined, hitting more than
a six-month low against the euro and a five-month low on the
dollar <GBP=>, by data showing UK inflation fell to just 1.1
percent in September, its lowest in five years.
EAGER FOR EARNINGS
Stocks were broadly flat ahead of major U.S. earnings data.
European markets underperformed slightly as German analyst
and investor sentiment, captured by the closely-watched ZEW
survey showed, unexpectedly fell for the first time in three
months to hit its lowest level since July.
Key results due this week include Intel <INTC.L>, Goldman
Sachs <GS.N> and General Electric <GE.N>. Intel is expected to
beat forecasts with its results later on Tuesday but some worry
that corporate spending might not rebound until mid-2010.
"Investors now are in wait-and-see mode," said Philippe
Gijsels, strategist at Fortis Bank. "Everyone would like to see
top-line growth, but I think it is possible companies could
disappoint on this."
According to Thomson Reuters data, the quarterly earnings
contraction rate for the three months ending September -- based
on reported and estimated earnings -- stands at 24.7 percent,
compared with a contraction rate of 27.3 percent in Q2.
Earnings are expected to bounce back strongly to growth
later this year with an estimated growth rate of a whopping
193.4 percent in the fourth quarter.
"There may be some corrections in this market, but you're
better off being in the market, for further gains," said Bernard
McAlinden, investment strategist at NCB Stockbrokers.
MSCI world equity index <.MIWD00000PUS> rose 0.1 percent but
stayed just shy of its highest level since October 2008, set on
Monday. The index has gained more than 28 percent this year,
recouping nearly two thirds of losses from last year.
The FTSEurofirst 300 index <> fell 0.2 percent,
dragged by falls in banks.
Emerging Asia stocks <.MIAPJ0000PUS> hit a fresh 14-month
high. Broader emerging stocks <.MSCIEF> were up 0.1 percent.
According to Thomson Reuters data, out of 32 S&P 500
companies which reported results, 78 percent beat expectations,
compared with 13 percent which missed forecasts.
"The current Q3 earning season may drive the equity market
into a liquidity induced overdrive. Real money and even the more
aggressive hedge fund community have missed the equity market
rally and have not invested strongly enough to catch up with
benchmark indices," BNP Paribas said in a note to clients.
"Unless there is a shock, such as a major credit event, the
share market will move sharply higher which will keep the dollar
under pressure."
U.S. crude oil <CLc1> rose 1.3 percent to a seven-week high
of $74.28 a barrel.
The September bund future <FGBLc1> was helped by the weaker
ZEW index and was up 14 ticks on the day even as traders awaited
this week's record issuance of up to 35 billion euros.
(Additional reporting by Jamie McGeever, Brian Gorman,
Joanne Frearson; editing by Ron Askew)
