* World stocks heading for 6th week of gains
* Wall Street set for gains
* Citigroup, GE earninngs lift sentiment
* European stocks up 1.2 percent Japan 1.7 percent
* Economy worries hurt euro
By Jeremy Gaunt, European Investment Correspondent
LONDON, April 17 (Reuters) - World stocks climbed towards
their sixth consecutive week of gains on Friday and Wall Street
looked set to join in after General Electric <GE.N> and
Citigroup <C.N> posted better-than-expected earnings.
The dollar also climbed, hitting a one-month high against
the euro.
MSCI's all-country world stock index <.MIWD00000PUS> was up
0.2 percent with both Europe and Japan gaining more than 1
percent. The world index was up 1.8 percent on the week, gaining
more than 29 percent since a March 9 low.
GE and Citi joined the likes of Goldman Sachs, JPMorgan and
Google in issuing earnings reports that, at the very least, were
less bad than feared. [] []
Such results have added to increasing optimism that equity
markets and economies have hit bottom.
European Central Bank President Jean-Claude Trichet said the
battered global economy faces a difficult year but will begin a
recovery in 2010. Other central bankers have also noted some
signs of stabilisation. []
A jump in Chinese industrial output in March has added to a
sense instilled by some U.S. indicators that the pace of
deterioration has slowed from the alarming rate of just a few
months ago.
Investors have taken note.
U.S. financial services firm State Street said evidence was
building that big investors are now buying into the rally,
particularly in U.S. and emerging market stocks.
"It seems the nightmare may now be ending. Markets have been
having quite a party of late," State Street said in a note.
"Institutional investors are backing this rally."
The pan-European FTSEurofirst 300 <.FTEU3) was up 1.2
percent. Earlier, Japan's Nikkei <> gained 1.7 percent.
EURO DROPS
The euro fell to a one-month low against the dollar on
concerns about the health of the euro zone economy after Moody's
said it may cut Ireland's sovereign debt ratings.
Moody's said Ireland's prized 'AAA' rating may be cut to
mid-to-high Aa range if it concludes that the country will
emerge from the crisis with "relatively weak growth prospects
and a much higher debt burden". [].
Ireland has already lost its top-notch rating status from
the other two major ratings agencies, S&P and Fitch.
The single currency had already been reeling from earlier
comments from Trichet that he appreciated U.S. policymakers
saying a strong dollar was in U.S. interests, and that to say
the euro is weak "doesn't reflect the current situation".
[]
The euro was at $1.3044 <EUR>, down 1 percent and at a
one-month low against the dollar.
The two-year Schatz yield <EU2YT=RR> was up 4 basis points
at 1.420 percent after marking an intraday high of 1.472 percent
and underperforming other issues.
The 10-year Bund yield <EU10YT=RR> was up 1 basis point at
3.193 percent.
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(Editing by Mike Peacock)
