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GLOBAL MARKETS-Stocks rally as global sell-off abates, bonds fall
2014年10月17日 / 下午3点33分 / 3 年前

GLOBAL MARKETS-Stocks rally as global sell-off abates, bonds fall

* European shares surge in biggest percentage gain in 2
    * Corporate earnings, fresh data spur stocks on Wall Street
    * Oil climbs while gold drops back

 (Adds U.S. market open, byline, dateline; previous LONDON)
    By Herbert Lash
    NEW YORK, Oct 17 (Reuters) - World equity markets rallied,
with European stocks gaining the most in more than two years,
and bond prices fell on Friday as investors poured back into
beaten-down markets on solid U.S. corporate earnings and rising
consumer sentiment.
    Wall Street followed Europe's lead, with all major stock
indexes climbing more than 1 percent after earnings reports
eased concerns about the impact of weak global demand on U.S.
growth and businesses.
    Results at General Electric, Honeywell International
Inc and Morgan Stanley topped expectations. With
81 companies in the S&P having reported third-quarter results,
64.2 percent beat expectations, slightly below the average over
the past four quarters, but better than the 20-year average.
    GE rose 3.3 percent to $25.05, Honeywell gained 3.6 percent
to $89.49 and Morgan Stanley advanced 3.1 percent to $33.53.
    U.S. housing starts and permits rose in September, a sign
the market's modest recovery is supporting a growing economy,
while U.S. consumer sentiment rose in October to the highest in
more than seven years, a Thomson Reuters/University of Michigan
preliminary reading for the month showed. 
    Despite the rally, the S&P 500 index is still on track for a
fourth straight weekly decline, its longest streak in more than
three years. The U.S. benchmark is down more than 7 percent from
a record high in September as concerns about the global economy,
a resurgent European debt crisis and the Ebola virus led to a
furious downturn. 
    "The reaction the market has had over the past couple of
weeks is a bit overdone," said David Lafferty, chief market
strategist at Natixis Global Asset Management, which oversees
$930 billion in assets.
    "The overall trend of the market is to grind higher on
earnings, but the real flashpoint for risk assets is going to be
the ECB," Lafferty said, referring to whether the European
Central Bank can deliver a quantitative easing program.
    MSCI's all-country world index rose 1.3
percent, while the FTSEurofirst 300 index of top
European shares rose 2.52 percent to 1,277.14, its biggest gain
by percentage since June 2012.
    Though nervousness remained, some reassuring words from U.S.
and European policymakers, better U.S. data and beaten-down
prices after another big week of equity and commodity declines,
drew buyers into the market.
    The U.S. dollar edged higher. The euro was last down
0.32 percent against the dollar at $1.2766, just off a session
low of $1.2755. The dollar was up 0.36 percent against the yen
 at 106.70 yen. 
    "Obviously, some of the momentum in the economy is
continuing, despite what Wall Street tells you," said Axel Merk,
 chief investment officer at Palo Alto, California-based Merk
    Brent crude oil rose above $86 a barrel, bouncing from near
four-year lows as investors bought back into a market they said
was oversold, and as fighting in Iraq increased political risk.
    Brent for December rose 48 cents to a high of
$86.30. U.S. November crude, heading for its third weekly
decline, was up 86 cents at $83.56.
    U.S. Treasuries prices posted their second straight day of
    Benchmark 10-year notes, which rose by as much
as 3 points on Wednesday on fears over the global economy, were
off 19/32 in price on Friday to yield 2.22 percent.

 (Reporting by Marc Jones; Editing by Hugh Lawson and Chris

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