GLOBAL MARKETS-U.S. stocks jump as investors ready for looming rate hike

* Wall St adds to gains after Fed minutes
* Long-dated bonds turn flat, paring losses
* Stocks drop in Europe after strong rally a day earlier
* Oil pares gains, U.S. crude dips below $40

(Updates to afternoon trading)
By Lewis Krauskopf
NEW YORK, Nov 18 (Reuters) - U.S. stocks strengthened and
long-dated Treasury prices cut losses on Wednesday after minutes
from the most recent Federal Reserve policy meeting showed a
core of officials backed a possible rate hike in December.
The minutes of the Fed's Oct. 27-28 meeting showed "most"
participants felt conditions for a rate hike "could well be met
by the time of the next meeting." urn:newsml:reuters.com:*:nTLAIMEB1F
Earlier, two Fed officials expressed confidence that they
will be able to pull off a relatively smooth interest-rate hike
when the time comes. urn:newsml:reuters.com:*:nL1N13D20B
"I think the market is ready and comfortable for an
increasing Fed funds rates," said Alan Rechtschaffen, portfolio
manager at UBS Wealth Management Americas in New York.
"We just have to turn this aircraft carrier around, get out
of this zombie-like economy which is being fed on an elixir of
low interest rates and get to a process of normalization,"
Rechtschaffen said.
The Dow Jones industrial average .DJI rose 193.28 points,
or 1.11 percent, to 17,682.78, the S&P 500 .SPX gained 25.9
points, or 1.26 percent, to 2,076.34 and the Nasdaq Composite
.IXIC added 71.75 points, or 1.44 percent, to 5,057.77.
Major European stock index fell as security issues remained
a focus for investors. A suicide bomber blew herself up in a
police raid that sources said had foiled a jihadi plan to hit
Paris's business district, days after attacks that killed 129
across the French capital. urn:newsml:reuters.com:*:nL8N13D1HC
The pan-European FTSEurofirst 300 index .FTEU3 , which had
risen 2.6 percent on Tuesday, dipped 0.2 percent Wednesday, with
industrial gas company Air Liquide AIRP.PA off sharply after
announcing an expensive-looking acquisition. The French CAC 40
index .FCHI fell 0.6 percent. urn:newsml:reuters.com:*:nL8N13D46K
An index of major global markets rose 0.5 percent.
The U.S. dollar .DXY edged up 0.02 percent against a
basket of currencies after hitting a seven-month high on
Tuesday, while the euro EUR= rose 0.06 percent against the
greenback. The dollar index has risen more than 6 percent in the
past month.
U.S. housing starts in October fell to a seven-month low as
single-family home construction in the South tumbled, but a
surge in building permits suggested the housing market remained
on solid ground. urn:newsml:reuters.com:*:nL1N13D0YA
Benchmark 10-year Treasuries notes US10YT=RR were down
4/32 in price for a yield of 2.2746 percent. Prices for 30-year
Treasuries were up 2/32 with a yield of 3.0447
percent. urn:newsml:reuters.com:*:nL1N13D13V
German Bund DE10YT=TWEB yields slipped 2.5 basis points to
0.507 percent.
"There is a bit of a safety bid for core bonds from the
nervous energy around events in Paris," said Matthew Cairns,
fixed income strategist at Rabobank.
Oil prices pared earlier gains, after U.S. crude stockpiles
neared record highs. U.S. crude futures CLc1 fell below $40
during the session, to $39.91, and last traded up 0.3 percent at
$40.78 per barrel. Brent crude futures LCOc1 rose 1.5 percent
to $44.21 per barrel.
Zinc, lead and nickel fell, to around their lowest points in
five to seven years, as fears persisted over waning demand in
top metals user China. urn:newsml:reuters.com:*:nL8N13D4DI
Spot gold XAU= , hovering around 2010 lows, slipped 0.05
percent.