GLOBAL MARKETS – Stocks gain as bullish Wall St earnings boost outlook



* S&P 500 and Dow hit records

* Central bank meetings, data later in the week adds risk

* WTI hits its highest level since October 2014, Brent hits its highest level in three years (updates with US markets close)

By Chibuike Oguh

NEW YORK, Oct. 25 (Reuters) – Global equities rose and Treasury yields fell on Monday as major Wall Street benchmarks hit new highs, supported by a strong start to the US corporate earnings season and improved economic prospects.

A large chunk of the S&P 500 companies are expected to release their results this week, including tech heavyweights Facebook, Apple Inc, Amazon, Microsoft and Alphabet, which have been driving the market rally this year. The Dow Jones Industrials and S&P 500 closed at record highs on Monday as traders eagerly awaited earnings reports.

“The most important thing is that the earnings are better than expected and what is more interesting is that as we approach the end of the year we are going to see the forward guidance be lifted which would make the more reasonable market multiple, ”said Thomas Hayes, president of Great Hill Capital in New York. The MSCI Global Equity Index, which tracks stocks from 50 countries, rose 0.28%, while the pan-European STOXX 600 index gained 0.07%. In choppy trading Monday, US Treasury yields were lower as uncertainty over when the Federal Reserve would raise rates to curb rising inflation weighed on market sentiment.

The US 10-year benchmark rate fell to 1.6325%. Last week, the 10-year rate hit 1.705%, the highest since mid-May.

The US dollar fell from a one-month low on Monday, ahead of central bank meetings and upcoming economic data later this week, boosted by the prospect of a tightening of US monetary policy. The dollar index rose 0.178% to 93.828.

On Wall Street, the group of securities with the highest gains were consumer discretionary, industrials, communications services and technology stocks.

A series of strong quarterly earnings reports this month, including JP Morgan Chase & Co and Goldman Sachs Group Inc and insurer Travelers Cos Inc, have boosted market expectations.

Tesla, which jumped 12.66% and topped $ 1,000 billion in market cap, also provided the biggest boost to the S&P 500 and the Nasdaq.

The Dow Jones Industrial Average rose 0.18% to 35,741.15, the S&P 500 gained 0.47% to 4,566.48 and the Nasdaq Composite added 0.9 to 15,226.71. Oil prices rose Monday to multi-year highs, amid tight global supply and stronger demand for fuel in the United States and beyond sustained prices.

Brent crude futures gained 0.43% to $ 85.90 a barrel, while US West Texas Intermediate (WTI) crude futures reduced their earlier gains and traded lower at 0.06% to $ 83.71 per barrel in the early afternoon.

Gold prices rose nearly 1% on Monday, as lower U.S. bond yields and lingering inflation concerns lifted the safe-haven asset ahead of major central bank meetings this week. Spot gold gained 0.85% to $ 1,807.7102 an ounce, while US gold futures for December delivery stabilized 0.6% at $ 1,806.80 the ounce.

(Reporting by Chibuike Oguh; editing by David Evans and Sam Holmes)



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