Global stocks soar on robust corporate earnings

By Herbert Lash

NEW YORK (Reuters) - Global stocks soared on Friday on U.S. earnings reports, including results from Citigroup, that gave investors hope the worst of a sharp credit crunch that has battered markets for months was over.

Citigroup's earnings eased investor fears of a simmering U.S. housing-sparked financial crisis. That helped lift the dollar to a seven-week high against the yen and pulled it further away from a record low against the euro hit earlier this week.

But oil hit a lifetime high of $117 a barrel, the fourth time crude has hit a record peak this week in New York trading. Investors dumped safe-haven gold, sending prices down 3 percent, as they added positions in riskier bets such as stocks and crude oil.

Investors drove European stocks to a 10-day high and lifted the Dow Jones industrial average to a three-month high. Bond yields rose on both sides of the Atlantic as investors slashed hopes of interest rate cuts.

Strong earnings at Google Inc (GOOG.O) fuelled a rally in the U.S. technology sector, while robust international sales helped manufacturers Honeywell International (HON.N) and Caterpillar Inc (CAT.N) post stronger-than-expected earnings.

The results helped improve a first-quarter earnings picture that had looked dismal after disappointments last week from Alcoa Inc (AA.N) and General Electric Co (GE.N).

The Dow .DJI rose 228.87 points, or 1.81 percent, to 12,849.36. The Standard & Poor's 500 Index .SPX added 24.77 points, or 1.81 percent, to 1,390.33. The Nasdaq Composite Index .IXIC rose 61.14 points, or 2.61 percent, to 2,402.97.

Google's shares rose 20 percent after the company said late on Thursday that it saw no impact from a weakening economy as it posted a better-than-expected quarterly profit and dismissed investor fears of an online advertising slump.