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Risk appetite return lifts stocks globally, dollar; supply drives oil up

Reuters  |  NEW YORK 

By Rodrigo Campos

NEW YORK (Reuters) - led stocks higher globally on Thursday, more than offsetting declines in Asia, as an expected strong earnings season took front seat after U.S. cast doubt over the timing of his threatened strike on

The risk of clashes between Western powers and in over an eased somewhat as Trump reworded his Wednesday threat that missiles "will be coming" while taunting for supporting Syrian

Trump wrote on Thursday that an attack on "could be very soon or not so soon at all."

Investors turned their focus to corporate earnings as , the world's largest asset manager, reported quarterly profit above estimates. Its shares were up 1.5 percent.

Analysts expect quarterly profit for all companies to rise 18.4 percent from a year ago, the biggest gain in seven years, according to I/B/E/S.

"Investors are looking for earnings to be the market's saviour and to help reduce some of this volatility that we've seen," said Michael Arone, at in

The Dow Jones Industrial Average <.DJI> rose 311.24 points, or 1.29 percent, to 24,500.69, the <.SPX> gained 23.08 points, or 0.87 percent, to 2,665.27 and the <.IXIC> added 70.29 points, or 0.99 percent, to 7,139.32.

The pan-European index <.FTEU3> rose 0.67 percent and MSCI's gauge of stocks across the globe <.MIWD00000PUS> gained 0.40 percent.

Emerging market stocks lost 0.05 percent. MSCI's broadest index of shares outside <.MIAPJ0000PUS> closed 0.31 percent lower, while Japan's Nikkei <.N225> lost 0.12 percent.

The higher risk appetite as geopolitical tensions eased boosted yields as bond prices fell. The safe-haven also fell.

"There is less immediate concern about military strikes or action in Syria," said Jim Vogel, at in

"It doesn't move it to the back-burner, but it allows you to look around and trade other things and that gives room for rates to rise just a little bit from their sort of cramped or compressed levels," he said.

Benchmark 10-year Treasury notes last fell 10/32 in price to yield 2.8266 percent, from 2.79 percent late on Wednesday.

The 30-year bond last fell 18/32 in price to yield 3.0327 percent, from 3.005 percent late on Wednesday.

fell initially as geopolitical concerns eased somewhat, but later rose, supported partly by shrinking global

OPEC told in the global has effectively shrunk by nine-tenths since the start of 2017.

"We have seen an accelerated shrinkage of stocks in storage from unparalleled highs of about 400 million barrels to about 43 million above the five-year average," Barkindo said.

U.S. crude rose 0.45 percent to $67.12 per barrel and Brent was last at $72.10, up 0.06 percent on the day.

Both are at levels not seen since 2014.

The dollar index <.DXY> was on track to snap a four-day losing streak as it rose 0.2 percent, with the euro down 0.28 percent to $1.233.

"It's a reversal of the safe-haven trade that lifted the yen and the Swiss franc earlier in the week," said Karl Schamotta, at Cambridge Global Payments in

The weakened 0.37 percent versus the greenback at 107.20 per dollar, while the dollar was up 0.46 percent against the Swiss franc .

Sterling was last trading at $1.4228, up 0.37 percent on the day.

Safe-haven gold fell from an 11-week high as the dollar edged higher and investors booked profits.

Spot gold dropped 1.2 percent to $1,337.01 an ounce. U.S. gold futures fell 1.46 percent to $1,336.70 an ounce.

Copper lost 1.86 percent to $6,821.00 a tonne.

(Reporting by Rodrigo Campos, Chuck Mikolajczak, and in New York; Editing by and Dan Grebler)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, April 13 2018. 00:33 IST
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