By Jeremy Gaunt, European Investment Correspondent
LONDON, July 30 (Reuters) - World stocks rose on Wednesday
as worries about oil receded, U.S. consumer confidence
stabilised and corporate earnings bolstered investor sentiment.
The dollar was barely changed against a basket of major
currencies and euro zone government bond prices rose.
European shares opened higher with the FTSEurofirst 300
<> up around 0.7 percent. Japan's Nikkei average <>
earlier gained around 1.6 percent.
MSCI's main world stock index <.MIWD00000PUS> was up 0.7
percent and its emerging market counterpart <.MSCIEF> gained
more than 1 percent.
A key factor in the gains was the recent fall in oil prices
and other commodities.
"The oil's descent is nice. The month-to-date 12.23 percent
fall in commodities is even better," Lehman Brothers said in a
note to clients.
New York crude oil <CLc1> was hovering around $122 a barrel,
reflecting a major slide from its record above $147 hit two and
a half weeks ago.
The fall has eased concerns about global inflation and
raised prospects that central banks will be able to cut interest
rates if needed to stimulate economies.
Equally, sentiment was lifted by Tuesday's U.S. economic
data showing consumer confidence had halted a six-month slide,
although it remained near the lowest level in more than a
decade.
Spending by U.S. consumers is a key driver for much of the
world's economy.
Merrill Lynch's $5.7 billion writedown and share sale was
also being interpreted by some investors as a signal of a
turning point in the credit crisis.
Some earnings results have also pleased, including German
engineering group Siemens <SIEGn.DE> posting a
stronger-than-expected rise in new orders and revenue, and U.S.
consumer product maker Colgate-Palmolive <CL.N> reporting a 19
percent jump in quarterly profits.
DOLLAR STABLE, BONDS RISE
The dollar inched lower against a basket of currencies
<.DXY> but held close to a one month high.
The euro was up 0.1 percent at $1.5606 <EUR=> recovering a
touch after falling 1 percent the previous day, dented by news
that French consumer confidence plunged to a record low for the
seventh straight month in July.
The dollar dipped 0.15 percent to 107.94 yen <JPY=> but
stayed in sight of a one-month high of 108.30 yen reached on
Tuesday.
Euro zone government bonds were slightly higher, buoyed in
general by poor euro zone economic data.
Two-year bond yields <EU2YT=RR> were down 4 basis points at
4.301 percent, while 10-year yields <EU10YT=RR> were barely
lower at 4.459 percent.
"There's certainly the risk of more weak euro zone data, and
that certainly underpinned things yesterday," said one trader.
(Editing by Mike Peacock)
