* World stocks hit 12-month high, up 0.7 pct <.MIWD00000PUS>
* Stocks boosted as JPMorgan <JPM.N> results beat forecasts
* Dollar hits 14-month low vs euro <EUR=>, basket <.DXY>
* Gold <XAU=> hits record, oil <CLc1> at year's highs
By Tamawa Desai
LONDON, Oct 14 (Reuters) - World stocks extended 12-month
highs hit on Wednesday after results from JPMorgan Chase & Co
<JPM.N> boosted investor optimism over an economic recovery,
sending the dollar to 14-month lows and oil and gold higher.
U.S. stock futures <SPc1> rose 1.5 percent, paving the way
for a higher Wall Street open, as the U.S. bank's results beat
forecasts, adding to a brightening mood after chip-maker Intel
Corp <INT.O> posted strong earnings late on Tuesday.
With Chinese trade numbers [] and UK and euro
zone data also upbeat, MSCI's all-country world index
<.MIWD00000PUS> rose 1.1 percent to 295.32, a level last seen in
October a year ago.
The index is up 28 percent this year, and more than 70
percent since hitting a six-year low in March.
For a graphic showing world stocks and the dollar vs euro,
click here:
http://graphics.thomsonreuters.com/109/GLB_MKTH1009.gif
JPMorgan reported third-quarter net income of $3.6 billion,
or 82 cents per share, beating forecasts of 52 cents.
[]
"The results are very good for the sector. It's an
absolutely definitive catalyst for a positive market and has a
very positive impact on sentiment," said Geoff Wilkinson, Head
of Investment Research at Mint in London.
"If the broad U.S. banking indices are supported by this
then everything else will be supported as well."
Markets now await U.S. September retail sales data to gauge
the strength of consumers in the world's biggest economy. Sales
excluding the volatile auto sector are expected to have risen
for a second month.
Results from Citigroup <C.N> and Goldman Sachs <GS.N> are
also due on Thursday.
GOLD AT RECORD, OIL AT YEAR HIGHS
European shares <> also rose to their highest in a
year at 1,017.75, up 2.2 percent on the day, while MSCI's
emerging market equities index <.MSCIEF> reached its highest
since mid-August 2008 above 968.
But Thailand's benchmark stock index <> slipped more
than four percent to two-week lows as domestic financial markets
tumbled on concerns over the health of the country's 81-year-old
king, traders said. []
Gold <XAU=> hit a record above $1,070 an ounce and oil
<CLc1> rose to a 2009 peak above $75 a barrel as the dollar
slipped to its weakest in more than a year against the euro
<EUR=> and a currency basket <.DXY>.
"The JPMorgan results are playing through better risk
appetite, which typically means a weaker dollar," said Adam
Cole, global head of currency strategy at RBC in London. "As
stocks continue to rally the dollar will go down."
Risk assets were also fuelled by expectations that interest
rates in major economies would stay at rock-bottom levels for
some time, providing cheap funding for investors.
U.S. Federal Reserve Vice Chairman Donald Kohn said on
Tuesday the economy would likely be producing "well below" its
potential for some time and that expectations of future
inflation would more likely fall than rise. []
The Bank of Japan left key interest rates unchanged at 0.1
percent as expected [].
The yen got a boost after a deputy of Japan's finance
minister said Tokyo should not step into the foreign exchange
market just because the yen rises. []
"The current yen rise is due to the dollar weakness rather
than the yen's strength," Naoki Minezaki, one of the
government's two senior vice finance ministers, told Reuters in
an interview. "The dollar weakness is likely to persist."
(Additional reporting by Jeremy Gaunt, Hapreet Bhal and Naomi
Tajitsu; Editing by Patrick Graham)
