* Global stocks hover at month-high
* Bullish comments by Fed's Powell boost U.S. dollar
* Oil prices fall on U.S. stock rise, higher supply
* Wall St trades at 5-month highs as earnings roll in
By Lewis Krauskopf
NEW YORK, July 18 (Reuters) - The U.S. dollar hit a three-week high on Wednesday against a basket of major currencies in the wake of an upbeat view of the economy by the U.S. Federal Reserve, while oil prices resumed a recent pullback and gold slumped to a year low.
A gauge of global stock markets hovered at a month high while Wall Street traded near a five-month high as investors digested another significant day of corporate earnings.
The dollar index .DXY , which measures the greenback against a basket of six currencies, rose 0.18 percent, to 95.113 after rising as high 95.407. The euro EUR= was down 0.13 percent to $1.1644. increased after upbeat comments from Federal Reserve Chairman Jerome Powell about the U.S. economy in congressional testimony on Tuesday, a message he reiterated on Wednesday before a U.S. House panel. economic growth and a confident Fed is helping to support the dollar,” said Alan Gayle, president of Via Nova Investment Management LLC in Fredericksburg, Virginia.
"Higher short-term interest rates make the dollar more attractive relative to other currencies."
On Wall Street, the Dow Jones Industrial Average .DJI rose 57.03 points, or 0.23 percent, to 25,176.92, the S&P 500 .SPX gained 2.19 points, or 0.08 percent, to 2,811.74 and the Nasdaq Composite .IXIC dropped 5.72 points, or 0.07 percent, to 7,849.39.
Morgan Stanley (NYSE:MS) MS.N shares rose 2.8 percent after the bank's better-than-expected profit. pan-European FTSEurofirst 300 index .FTEU3 rose 0.60 percent, as shares of Swiss drugmaker Novartis NOVN.S and Sweden's Ericsson (BS:ERICAs) ERICb.ST gained after their reports. gauge of stocks across the globe .MIWD00000PUS gained 0.08 percent, and touched its highest point in a month.
Benchmark U.S. 10-year notes US10YT=RR last fell 1/32 in price to yield 2.8637 percent, from 2.862 percent late on Tuesday. The U.S. yield curve remained near its flattest in nearly 11 years. benchmark Brent crude hit a three-month low after government data showed a rise in U.S. crude inventories and oil production, which highlighted increasing global supply and concerns over weak demand. crude CLcv1 fell 0.29 percent to $67.88 per barrel and Brent LCOcv1 was last at $71.89, down 0.37 percent.
Gold, which is regarded as a hedge against inflation, extended its downtrend and sank to its lowest in a year on a buoyant dollar and falling oil prices. this environment where we also see oil prices falling, and so less concern from investors about rising inflation, that's another negative for the gold price," said Jens Pedersen, senior analyst at Danske Bank in Copenhagen.
Spot gold XAU= was down 0.1 percent at $1,226.23 an ounce.
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https://reut.rs/2L8rLag World FX rates in 2018
http://tmsnrt.rs/2egbfVh
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