GLOBAL MARKETS-Stocks rise on earnings; sterling falls

* Upbeat earnings push Wall Street higher
* Prospect of ECB, Fed easing supports global equities
* Europe climbs as car sector has best day since early
January
* Pound sags as hard Brexit advocate Johnson becomes UK PM
* Oil eases back after two days of Iran tension driven gains
*
* World FX rates in 2019 http://tmsnrt.rs/2egbfVh

(Updates to U.S. market open, changes dateline, byline)
By Stephen Culp
NEW YORK, July 23 (Reuters) - A host of upbeat earnings
pushed U.S. stocks higher on Tuesday and world stocks rose in
anticipation of central bank easing, while pound sterling fell
on the expected confirmation of hard-Brexit advocate Boris
Johnson as Britain's next prime minister.
Dow components Coca-Cola Co KO.N and United Technologies
Corp UTX.N both beat second-quarter earnings expectations as
the reporting season shifts into high gear.
"You're having good results from a variety of companies and
that has put a positive spin on the opening," said Peter Tuz,
president of Chase Investment Counsel in Charlottesville,
Virginia.
The International Monetary Fund cut its global growth
forecast through 2020 over concerns about the protracted tariff
spats between the United States and its trading partners and the
prospect of a disorderly Brexit. "The IMF is just stating the obvious," Tuz added. "The
tariffs have cast a pall on global trade."
The Dow Jones Industrial Average .DJI rose 92.12 points,
or 0.34%, to 27,264.02, the S&P 500 .SPX gained 8.71 points,
or 0.29%, to 2,993.74 and the Nasdaq Composite .IXIC added
12.86 points, or 0.16%, to 8,216.99.
The European STOXX 600 benchmark rose over 1%, helped by a
6% surge in automakers and growing certainties of policy easing
from the European Central Bank and the U.S. Federal Reserve.
The pan-European STOXX 600 index .STOXX rose 1.20% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.31%.
The dollar hit a two-week high against a basket of world
currencies, on the heels of a congressional deal to extend the
U.S. debt limit for two years, easing fears of a government
default. "The budget deal is also a minor worry that's been pushed
aside for a while," said Tuz.
But the British pound slid after Brexit advocate Johnson won
the Conservative Party leadership race and will replace Theresa
May as the country's prime minister.
With Johnson at the helm, credit ratings agency Moody's and
investment Goldman Sachs both warned the risk of a no-deal
Brexit was now higher.
"We raise our odds on a 'no deal Brexit from 15% to 20%, and
we reduce our odds on 'no Brexit' at all from 40% to 35%,"
Goldman said.
The dollar index .DXY rose 0.44%, with the euro EUR=
down 0.5% to $1.1152.
The Japanese yen weakened 0.24% versus the greenback at
108.14 per dollar, while sterling GBP= was last trading at
$1.2435, down 0.31% on the day.
Brent crude prices eased as worries faded over escalating
tensions in the Middle East following Iran's seizure of a
British oil tanker. U.S. crude CLcv1 fell 0.32% to $56.04 per barrel and Brent
LCOcv1 was last at $63.00, down 0.41% on the day.
U.S. Treasury yields inched higher as market participants
eyed upcoming ECB and Fed meetings for new signals about how
many interest rate cuts can be expected. Benchmark 10-year notes US10YT=RR last fell 3/32 in price
to yield 2.0533%, from 2.043% late on Monday.
The 30-year bond US30YT=RR last fell 11/32 in price to
yield 2.5857%, from 2.57% late on Monday.
Gold prices eased to a near one-week low following the U.S.
congressional debt ceiling deal. Spot gold XAU= dropped 0.1% to $1,423.69 an ounce.
Copper CMCU3 lost 1.10% to $5,951.50 a tonne.
Three-month aluminum on the London Metal Exchange CMAL3
rose 0.08% to $1,817.50 a tonne.

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