* JPMorgan earning results beat forecasts, boost stocks
* World stocks hit 12-month high
* Dollar hits 14-month low vs euro, basket
* Gold hits record, oil at year's highs
(Updates with U.S. markets, changes byline, dateline; previous
London)
By Manuela Badawy
NEW YORK, Oct 14 (Reuters) - Strong quarterly profits from
major U.S. bank JPMorgan Chase pushed world stocks to their
highest level in a year on Wednesday, boosting market optimism
of an economic recovery that sent the U.S. dollar to a 14-month
low against major currencies.
Gold prices <XAU=> edged back after hitting record highs
earlier in the session, supported by persistent weakness in the
safe-haven dollar and strength in oil prices, which rose to a
2009 high above $75 a barrel <CLc1>.
JPMorgan <JPM.N> quarterly profit surged to beat forecasts
and spur optimism about the rebound in top Wall Street banks.
The bank has remained among the healthiest U.S. lenders
throughout the financial crisis. []
The Dow Jones industrial average <> pushed over the
psychologically important 10,000-level for the first time since
October 2008.
The MSCI all-country world stock index <.MIWD00000PUS> rose
1.7 percent to a new 12-month high. The index is up 28 percent
this year, and more than 70 percent since hitting a six-year
low in March.
"On the back of a solid start to earnings season and strong
trade and loan growth releases from China, investors are widely
seeking risk today," said Camilla Sutton, currency strategist
at Scotia Capital in Toronto in a note to clients. "This has
helped push equities and commodities higher and the US dollar
and bond prices lower."
The buoyant bank results followed another forecast-beating
earnings from Intel Corp <INTC.O> and upbeat Chinese trade
data. []
Those factors helped brighten the economic outlook and
encouraged investors to move into perceived riskier and
higher-yielding currencies.
Risk assets were also fueled by expectations interest rates
in major economies would stay at rock-bottom levels for some
time, providing cheap funding for investors.
The Federal Reserve's minutes from its meeting of Sept.
22-23 will be released at 2 p.m. (EDT) with investors looking
for signs of the Fed's thinking on so-called exit strategies
from the monetary easing put in place to alleviate the credit
crisis and economic recession.
SAFE-HAVEN RETREAT
The U.S. dollar was down against a basket of six other
currencies, with the dollar index <.DXY> down 0.59 percent at
75.529, hitting its lowest since August 2008.
The dollar has fallen as investors bet on low U.S. interest
rates, with rising commodities denting its risk-free appeal.
The euro <EUR=> was up 0.36 percent at $1.4910 after rising
to its highest level since August 2008. Against the Japanese
yen, the dollar <JPY=> was down 0.51 percent at 89.23 yen from
a previous session close of 89.700.
U.S. government bond prices fell on the equity market
strength and government data showing improvement in retail
sales, diminishing the attractiveness of safe-haven U.S. debt.
The benchmark 10-year U.S. Treasury note <US10YT=RR> fell
13/32 its yield rising to 3.3857 percent.
The U.S. government report showed total sales at retailers
fell by a less-than-expected 1.5 percent in September.
[]
European shares also rose to their highest in a year at
1,017.75, up 2.2 percent on the day, while MSCI's emerging
market equities index reached its highest since mid-August 2008
above 968.
But Thailand's benchmark stock index slipped more than four
percent to two-week lows as domestic financial markets tumbled
on concerns over the health of the country's 81-year-old king,
traders said.
(Additional reporting by Nick Olivari, Edward Krudy in New
York, Tamawa Desai, Jan Harvey in London; Editing by Andrew
Hay)
