* World stocks near 13-month highs
* Japan gains 1.8 percent, Europe up 0.2 percent
* Dollar at fresh 14-month low against majors
By Jeremy Gaunt, European Investment Correspondent
LONDON, Oct 15 (Reuters) - Buoyant corporate earnings lifted
investors sentiment again on Thursday, sending world stocks to
near 13-month highs.
The dollar fell to a fresh 14-month low against a basket of
major currencies while low-yielding government bonds sold off.
"(Stock) momentum is great," said Koen De Leus, economist at
KBC Securities. "The market at the moment is driven by
liquidity. On the earnings side, every one thinks that
financials results are going to be better than expected."
The Dow Jones industrial average <> pierced the 10,000
level on Wednesday for the first time in a year bolstered by
strong results from JPMorgan Chase & Co <JPM.N> and Intel Corp
<INTC.O>.
Bullish sentiment carried over into most equity markets on
Thursday. Japan's Nikkei <> closed up 1.8 percent and the
FTSEurofirst 300 <> was up around 0.2 percent to hit a
one-year high for the second straight session.
It lifted MSCI's benchmark all-country world index
<.MIWD00000PUS> nearly 0.3 percent to a level last seen in late
September 2008, just after the collapse of Lehman Brothers.
The index has now risen about 73 percent since hitting a low
on March 9 this year.
Bank of America Merrill Lynch said on Wednesday their
monthly survey of fund managers had shown increasing bullishness
but that it had not reached the level yet that risk a sharp
counter swing.
"Equities remain in a sweet spot: fears of a double-dip have
receded, while worries about inflation and monetary tightening
are not imminent enough to prevent an October surge in risk
appetite," Michael Hartnett, the bank's chief global equity
strategist, said in a note. []
DOLLAR DOWN
The dollar fell broadly, hitting a 14-month low against the
euro and Australian dollar and 15-month trough versus the New
Zealand and Canada dollars.
The currency currently suffers when risk appetite rises
because of differing prospects for interest rates.
"Firmer equity markets and lower risk aversion continue to
depress the dollar," said Adam Cole, global head of FX strategy
at RBC Capital Markets.
The euro hit a 14-month high of $1.4967 <EUR=>, according to
Reuters data.
The dollar index, which tracks the performance of the
greenback versus a basket of six other major currencies, was
down 0.2 percent at 75.332 after falling to a 14-month low of
75.211 <.DXY>.
Euro zone government bonds extended losses as equities rose.
Ten-year yields <EU10YT=RR> were up 3 basis points at 3.270
percent, their highest since late September, with two-year
yields <EU2YT=RR> up 2 basis points at 1.367 percent.
(Editing by Mike Peacock)
