* MSCI Asia-Pacific index hits 2-month high
* Dollar rises, U.S. stocks rise after data, earnings
* U.S. crude dips amid lingering global glut concerns
(Updates with U.S. market open, commentary, changes byline,
dateline, previous London)
By Sinead Carew
NEW YORK, Oct 15 (Reuters) - The dollar strengthened, helped
by stronger-than-expected inflation data, and U.S. stocks were
driven higher by the financial sector and bank earnings reports.
The dollar .DXY was up 0.5 percent against a basket of
currencies, on track for its biggest one-day gain since Sept.
21. urn:newsml:reuters.com:*:nL1N12F0TL A 0.2 percent rise in September core U.S.
consumer prices revived bets domestic inflation is edging closer
to the Federal Reserve's 2-percent target. urn:newsml:reuters.com:*:nL1N12F0U3
The data also pushed up U.S. Treasuries yields slightly as
it renewed some hopes for a 2015 Federal Reserve rate hike.
urn:newsml:reuters.com:*:nL1N12F16Q
"On the margin, today's data lends some credence to the
possibility that the Fed could still build a 2015 case for
liftoff," said Neil Bouhan, government bond strategist at BMO
Capital Markets in Chicago.
U.S. stocks snapped two days of losses, also helped by some
strength in third-quarter earnings. While the benchmark S&P
500's financial sector led the pack with banks as the top
drivers, results were mixed.
Goldman Sachs (N:GS) GS.N shares fell 1.5 percent to $176.83
after results missed expectations on weak bond trading, but
Citigroup (N:C) C.N rose 1 percent after its results beat estimates.
"I think we could be looking at a bumpy, mixed positive
session," said Peter Cardillo, chief market economist at
Rockwell Global Capital in New York, adding the market could
turn as investors digest news through the day.
The Dow Jones industrial average .DJI rose 57.52 points,
or 0.34 percent, to 16,982.27, the S&P 500 .SPX gained 9.27
points, or 0.46 percent, to 2,003.51 and the Nasdaq Composite
.IXIC added 35.80 points, or 0.75 percent, to 4,818.65.
Crude oil fell on Thursday on expectations U.S. government
data will show a rise in inventories. Brent LCOc1 was off 0.9
percent at $48.69 per barrel while U.S. crude was down 1.8
percent at $45.81. urn:newsml:reuters.com:*:nL3N12F1FA
European shares snapped a three-day slide on the prospects
of more central bank support. European Central Bank policymaker
Ewald Nowotny said it was "quite obvious that additional sets of
instruments are necessary" to lift euro zone inflation.
ID:nF9N10U01H The regional FTSEurofirst 300 .FTEU3 rose 1.4
percent.
Asian shares hit their highest levels since mid-August, also
hoping for stimulus from China and Japan.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 2.1 percent. Japan's Nikkei .N225 gained
1.15 percent, as the second successive fall in manufacturers'
sentiment in Japan kept pressure on policymakers to do more.
ID:nT9N11A01F
MSCI's emerging share index .MSCIEF was up 2 percent after
a two-day fall and hit its highest level since Aug. 13.
"We are seeing continuous unwinding of bearish bets on
emerging currencies generally, as views of 'no U.S. hike this
year' are growing," said Seungji Jeon, Samsung (KS:005930) Futures' FX
analyst in Seoul.