* Global stock gauge rises to best day in about a month
* Oil jumps as Canada, Nigeria outages bolster prices
* Japan reiterates readiness to intervene on yen
* Greek stock market hits 2016 high on debt-relief prospect
(Updates with close of U.S. markets)
By Lewis Krauskopf
NEW YORK, May 10 (Reuters) - Stock markets around the world
rallied on Tuesday, helped by solid corporate earnings reports
and higher oil prices supporting energy shares, while the yen
again retreated sharply against the dollar.
MSCI's broad gauge of global stocks .MIWD00000PUS climbed
nearly 1.1 percent, its best session in about a month. The three
major U.S. indexes each ended up about 1.3 percent and the
pan-European FTSEurofirst 300 .FTEU3 index advanced 0.9
percent.
The yen fell against the dollar for a second day as a
Japanese economic adviser reiterated that the country was
prepared to intervene in currency markets.
Against a basket of currencies, the dollar .DXY edged up
0.2 percent.
The Dow Jones industrial average .DJI rose 222.44 points,
or 1.26 percent, to 17,928.35, the S&P 500 .SPX gained 25.7
points, or 1.25 percent, to 2,084.39 and the Nasdaq Composite
.IXIC added 59.67 points, or 1.26 percent, to 4,809.88.
Equities globally benefited from investors' belief that the
U.S. Federal Reserve is less likely to raise interest rates in
June in light of recent weaker-than-expected economic data, said
Peter Kenny, senior market strategist at Global Markets Advisory
Group in Berkeley Heights, New Jersey.
"Markets are banking on an unchanged interest rate
narrative, not only in June but for the foreseeable future,
meaning certainly to the end of the summer," Kenny said.
The S&P 500 tallied its best day in two months, helped by
Amazon AMZN.O , following a bullish analyst report, and
Allergan (NYSE:AGN_pa) AGN.N , after the U.S. pharmaceutical company posted
strong earnings.
Results from Credit Suisse CSGN.S and jewelry maker
Pandora PNDORA.CO helped the European index.
With U.S. corporate earnings season largely completed, the
proportion of raised forecasts by companies to those that are
lowered is the healthiest it has been since 2011, according to
Thomson Reuters data.
"Perhaps there is a perception that there is some daylight
ahead for corporate earnings growth," said Chuck Carlson, chief
executive officer at Horizon Investment Services in Hammond,
Indiana.
Greek shares .ATG hit 2016 highs after euro zone finance
ministers offered to grant Greece some debt relief, causing
Greek 10-year bond yields GR10YT=TWEB to fall below 8 percent
for the first time since early December.
Brazil's benchmark Bovespa stock index .BVSP gained 3.8
percent and the country's currency jumped with impeachment
proceedings against leftist President Dilma Rousseff back on
track, fueling optimism that a new pro-market administration
could take over on Thursday.
The yen slid 0.9 percent against the dollar as risk appetite
improved for a second straight session, undermining traditional
safe havens such as the Japanese currency.
"Risk appetite is naturally tied to the belief that we're in
an ultra-low-yield environment and investment managers can't
simply sit here," said Jeremy Cook, chief economist at payments
company World First in London.
Repeated verbal warnings from Japan over the weekend and on
Tuesday that it was prepared to step in to weaken the currency
have also held off investors.
Oil prices jumped after a late burst of buying driven in
part by expectations that record U.S. crude inventories would
not swell by as much as they have in recent weeks. Crude supply
outages in Canada, Nigeria and elsewhere also boosted prices.
U.S. crude CLc1 settled up 2.8 percent at $44.66 a barrel,
while benchmark Brent crude LCOc1 settled up 4.3 percent at
$45.52 a barrel. Oil prices have recovered some ground after
touching 12-year lows earlier in 2016.
Benchmark 10-year Treasury notes US10YT=RR gained 2/32 in
price to yield 1.7543 percent, down from 1.76 percent on Monday.
The U.S. government saw strong demand for its $24 billion
auction of three-year notes.