* MSCI world equity index down 0.1 pct at 292.49
* Europe slips on earnings caution; Asia hits 14-mth high
* Aussie dollar hits 14-month high vs US currency
By Natsuko Waki
DUBAI, Oct 13 (Reuters) - World stocks fell from this week's
one-year high on Tuesday as investors grew cautious ahead of
major third-quarter U.S. corporate earnings, while risk-hungry
investors drove the Australian dollar to a 14-month peak.
Key results due this week include Intel <INTC.L>, Goldman
Sachs <GS.N> and General Electric <GE.N>. Intel is expected to
beat forecasts with its results later on Tuesday but some worry
that corporate spending might not rebound until mid-2010.
According to Thomson Reuters data, the quarterly earnings
contraction rate for the three months ending September -- based
on reported and estimated earnings -- stands at 24.7 percent,
compared with the contraction rate of 27.3 percent in the second
quarter.
Earnings are expected to bounce back strongly to growth
later this year with an estimated growth rate of a whopping
193.4 percent in the fourth quarter.
"There may be some corrections in this market, but you're
better off being in the market, for further gains," said Bernard
McAlinden, investment strategist at NCB Stockbrokers.
MSCI world equity index <.MIWD00000PUS> fell 0.1 percent,
after hitting its highest level since October 2008 on Monday.
The index has gained more than 28 percent this year, recouping
nearly two thirds of losses from last year.
The FTSEurofirst 300 index <> fell 0.3 percent,
dragged by falls in banks.
Emerging Asian stocks <.MIAPJ0000PUS> hit a fresh 14-month
high. Broader emerging stocks <.MSCIEF> were steady on the day.
According to Thomson Reuters data, out of 32 S&P 500
companies which reported results, 78 percent beat expectations,
compared with 13 percent which missed forecasts.
"The current Q3 earning season may drive the equity market
into a liquidity induced overdrive. Real money and even the more
aggressive hedge fund community have missed the equity market
rally and have not invested strongly enough to catch up with
benchmark indices," BNP Paribas said in a note to clients.
"Unless there is a shock, such as a major credit event, the
share market will move sharply higher which will keep the dollar
under pressure."
U.S. crude oil <CLc1> rose 0.3 percent to $73.50 a barrel,
having hit a seven-week high near $74 on Monday.
The September bund future <FGBLc1> was steady ahead of this
week's record issuance of up to 35 billion euros.
RISK ON IN FX
The Australian dollar rose as high as US$0.9094 <AUD=>.
Earlier this month Australia became the first G20 country to
raise interest rates after the collapse of Lehman Brothers in
September 2008. The central bank signalled more rate hikes were
on the cards.
The New Zealand dollar also stayed near a 14-month high
<NZD=> against the U.S. dollar after the country's retail sales
rose higher than expected in August, reinforcing the view that
the central bank might move away from its easing bias after its
longest recession in more than 30 years.
The dollar <.DXY> rose 0.1 percent against a basket of major
currencies while the U.S. currency rose 0.3 percent to 90.04 yen
<JPY=>.
(Additional reporting by Brian Gorman; editing by Chris Pizzey)
