GLOBAL MARKETS-Stocks rise as risk favoured; sterling down

Tue Nov 10, 2009 9:18am GMT

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* MSCI world equity index up 0.1 pct at 296.16

* HSBC's upbeat report lifts banking sector

* Sterling falls on Fitch warning; oil falls below $79/bbl

LONDON, Nov 10 (Reuters) - World stocks ticked higher on Tuesday as positive reports from UK banks kept the momentum with investors who chased risky assets in anticipation countries would keep monetary policy accommodative.

Sterling fell broadly after a warning on Britain's triple-A credit rating while the dollar held near a 15-month low as investors bought higher-yielding currencies.

HSBC shares rose 2 percent (HSBA.L: Quote, Profile, Research) after the bank said its underlying third quarter profits were significantly ahead of a year ago and loan impairment charges fell.

Barclays (BARC.L: Quote, Profile, Research) said strong investment banking helped limit a fall in profit in the third quarter, adding it expected bad debts to peak earlier than it had previously expected. It also said it would restart dividends next month. Continued...