* Global stocks are up 6 pct year-to-date
* Strong U.S., European corporate earnings hoist equities
* U.S. dollar hits 3-yr low, charts point to record low
* Gold at lifetime high
By Emelia Sithole-Matarise
LONDON, April 21 (Reuters) - World equities jumped to their
highest level in nearly 33 months on Thursday while the dollar
hit a three-year low as upbeat U.S. and European corporate
earnings spurred investors into higher-yielding assets.
Gold surged to a lifetime high for a fifth straight session
on the sharply weaker dollar, with lingering tensions in the
oil-producing Middle East offering additional support.
Investor focus has shifted to solid U.S. and European
corporate earnings and signs the global economy is chugging
along even as the Federal Reserve remains cautious about when it
will start to unwind its super-loose policy, offsetting concerns
over sovereign debt problems on both sides of the Atlantic.
This has emboldened investors to pile back into riskier
assets, though some analysts advised caution as worries about
the euro zone debt crisis and problems in the supply chain
following the Japanese earthquake stayed in the background.
The MSCI All-Country World Index <.MIWD00000PUS> advanced
almost 0.7 percent to a high of 350.34, last seen in July 2008.
The index has risen around 6 percent so far this year.
"After a slow start, earnings have improved quite rapidly
and results from companies such as Intel and Apple have
certainly boosted investor sentiment," said Keith Bowman, equity
analyst at Hargreaves Lansdown.
"There is some nervousness in the background, particularly
in relation to the situation in Japan and what that means for
the supply chain, but as of today the markets have concentrated
on good corporate results."
German business sentiment fell in April as expectated, the
closely-watched Ifo survey showed. []
The FTSEurofirst 300 <> index of top European shares
was up 0.3 percent at a one-week high, with technology stocks
leading gains after iPod maker Apple <AAPL.O> smashed earnings
forecasts. []
Asian stocks recovered sharply from a stumble earlier in the
week and rose to their highest level since January 2008 while
the emerging stocks index <.MISCIEF> climbed 0.9 percent.
The rally in equity markets cooled demand for safe-haven
government bonds, pushing U.S. and euro zone benchmark German
debt lower, though lingering concerns about the currency bloc's
sovereign debt crisis limited losses.
GRIM DOLLAR OUTLOOK LIFTS GOLD
With little chance of the Fed raising interest rates any
time soon, the dollar index <.DXY> fell 0.85 percent to 73.737,
its lowest level since August 2008. Technical charts suggested
it could move towards a record low of 70.698 hit earlier that
year. []
"Strong earnings reports from a lot of companies have driven
risk appetite and we have seen huge moves in all dollar crosses,
but it would be surprising if we didn't see some profit-taking,"
said Richard Falkenhall, currency strategist at SEB in
Stockholm.
The sharply weakening U.S. dollar has suffered the most
against commodity-linked currencies such as the Australian and
Canadian dollars, as well as emerging markets currencies such as
the Singapore dollar, as some policymakers in Asia allow more
currency strength to fight imported inflation.
Brazil's central bank raised its benchmark interest rate
<BRCBMP=ECI> on Wednesday to 12 percent from 11.75 percent as it
seeks to rein in consumer prices.
Spot gold <XAU=> hit a record high of $1507.19 an ounce and
spot silver <XAG=> soared to a 31-year high while the Australian
dollar powered to peaks above $1.07 -- a level not seen since
the currency became free-floating in the early 1980s.
For the week, the Aussie was up 1.8 percent, making it the
best performer among G10 currencies.
The euro <EUR=> pushed to 15-month peaks but has lagged the
broader move due to resurgent worries about the euro zone
crisis. Markets remain concerned that Greece is on the verge of
announcing a debt restructuring, despite repeated denials by
Athens, and potential snags in Portugal's bailout package.
The weakness in the dollar and a drop in U.S. stockpiles
helped lift Brent crude prices above $124 a barrel, with Reuters
data showing the correlation between a softer greenback and
rising oil prices at its strongest this year.
(Additional reporting by Jessica Mortimer, Atul Prakash and
Vikram Subhedar; Editing by Catherine Evans)
