* World stocks extend gains, nearing two-week highs
* Bonds, dollar under pressure as risk appetite improves
* U.S. crude above $60 a barrel, up more than $1
* MSCI World stock index last up 0.8 percent
By Ian Chua
LONDON, July 15 (Reuters) - Global stocks rose to their
highest level in nearly two weeks on Wednesday as blockbuster
results from major firms such as tech bellwether Intel Corp
<INTC.O> underpinned appetite for riskier assets.
Goldman Sachs <GS.N> and Intel posted solid results while
Johnson & Johnson <JNJ.N> beat analysts' forecasts with a 5
percent fall in second-quarter earnings, getting the U.S.
earnings season off to a bright start.
The news helped lift U.S. crude oil <CLc1> above $60 a
barrel and drive three-month copper <MCU3=LX> up 1.6 percent,
but the dollar and less risky assets such as government bonds
suffered.
Investors and policymakers are anxiously looking for signs
of a pick up in U.S. demand, which is key to a solid global
recovery.
World stocks as measured by MSCI <.MIWD00000PUS> rose 0.8
percent to 241.86, having earlier touched 241.93 -- a level last
seen on July 2 -- and the emerging markets sector index
<.MSCIEF> jumped 2 percent.
Intel shares surged 8.0 percent in Frankfurt <INTC.F>, while
the Nasdaq futures <NDc1> climbed up 1.5 percent.
In Europe, the FTSEurofirst 300 index of top regional shares
was up 1.0 percent, rising for a third day running.
Japan's Nikkei average <>, however, edged up just 0.1
percent, underscoring some concerns ahead of more earnings in
the United States and Japan.
"Despite positive Q2 results from Intel and Goldman Sachs
... equity markets posted only modest gains, with the focus
shifting to worries about whether other U.S. banks reporting
their Q2 figures this week will be as robust," said Stuart
Bennett, senior FX strategist at Calyon in London.
BONDS/DOLLAR PRESSURED
Despite the underlying caution, investors gave government
bonds a wide berth, sending the euro zone's benchmark yield
<EU10YT=RR> up towards a two-week high near 3.35 percent.
U.S. Treasuries, however, found a steadier footing after the
recent fall, with the 10-year yield <US10YT=RR> retreating from
Tuesday's high of 3.48 percent. Yields trade inversely to bond
prices.
"The reaction from preliminary earnings starting with
Goldman Sachs yesterday led to a positive reaction in the stock
market. On balance this is putting some weight on the govvie
sector but this should remain relatively limited," said Patrick
Jacq, interest rate strategist at BNP Paribas in Paris.
The dollar fell to a two-week low against a basket of
currencies as investors sought higher-yielding units such as the
Australian dollar.
The dollar index <.DXY> slipped 0.6 percent to its lowest
since the start of the month, while the euro <EUR=> gained 0.5
percent to $1.4044. Against the U.S. dollar, the Australian
currency <AUD=D4> rose a third of a percent to $0.7967.
The yen showed little reaction to the Bank of Japan's widely
expected move to extend special corporate finance-support
measures by three months, although some analysts were surprised
that the extension was not longer. []
(Additional reporting by Emelia Sithole-Matarise and Naomi
Tajitsu; Editing by Toby Chopra)
