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Strong earnings boost stocks as markets eye ECB

John Biers
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In Frankfurt, the DAX index eased 0.1 percent

In Frankfurt, the DAX index eased 0.1 percent (AFP Photo/Daniel Roland)

New York (AFP) - Global stocks rose Tuesday following a plethora of mostly good US corporate earnings and ahead of a European Central Bank meeting that is expected to keep monetary stimulus alive.

In the US, the tech-rich Nasdaq fared especially well, with blowout results from Netflix lifting the on-demand television service by nearly 20 percent and positive reviews of Google's new smartphone boosting Google parent Alphabet to a new all-time high.

"The Netflix news was taken pretty positively," said Jack Ablin, chief investment officer at BMO Private Bank, adding that the balance of third-quarter earnings has been solid thus far.

"Investors are increasingly believing that this will be the first quarter in five that we'll have earnings growth," Ablin said.

Others in the US to report strong earnings included the health insurer UnitedHealth and Goldman Sachs, while IBM disappointed after reporting lower revenue for the 18th straight quarter.

Bourses in both Paris and Frankfurt climbed more than one percent, with banking shares especially strong ahead of Thursday's ECB meeting. Some analysts expect the ECB to maintain current programs to spur growth and could open the door to additional stimulus in December.

London gained 0.8 percent following data that showed British annual inflation surged to a near two-year high of 1.0 percent in September, as a tumbling pound raised prices of imported goods and attracted tourists.

But on Tuesday, the pound pushed higher against the dollar and euro after British government lawyer James Eadie told Britain's High Court that Britain's parliament will "very likely" need to approve any official deal with the European Union following Brexit.

That translated into "another delay for Brexit which has caused the pound to appreciate," said Stephen Simonis, chief currency consultant at FXDD Global.

"Although no formal decision has been announced as of yet, reports of Parliament's involvement is positive for the currency as many members disapprove of a 'hard Brexit,'" said BK Asset Management analyst Kathy Lien.

- Key figures at 2100 GMT -

New York - DOW: UP 0.4 percent at 18,161,94 (close)

New York - S&P 500: UP 0.6 percent at 2,139.60 (close)

New York - Nasdaq: UP 0.9 percent to 5,243.84 (close)

London - FTSE 100: UP 0.8 percent at 7,000.06 points (close)

Frankfurt - DAX 30: UP 1.2 percent at 10,631.55 (close)

Paris - CAC 40: UP 1.3 percent at 4,508.91 points (close)

EURO STOXX 50: UP 1.3 percent at 3,046.99 (close)

Tokyo - Nikkei 225: UP 0.4 percent at 16,963.61 (close)

Hong Kong - Hang Seng: UP 1.6 percent at 23,394.39 (close)

Shanghai - Composite: UP 1.4 percent at 3,083.88 (close)

Euro/dollar: DOWN at $1.0979 from $1.1001 Monday

Dollar/yen: DOWN at 103.87 yen from 103.88 yen

Pound/dollar: UP at $1.2295 from $1.2182

Euro/pound: DOWN at 89.29 pence from 90.31 pence

Oil - West Texas Intermediate: UP 35 cents at $50.29 per barrel

Oil - Brent North Sea: UP 16 cents at $51.68