GLOBAL MARKETS-Stocks rise on upbeat earnings, sterling drops on Brexit prospects

* Upbeat earnings push Wall Street higher
* Prospect of ECB, Fed easing supports global equities
* IMF cuts global economic outlook through 2020
* Pound sags as hard Brexit advocate wins party leadership
* Oil eases back after two days of Iran tension driven gains
*
* World FX rates in 2019 http://tmsnrt.rs/2egbfVh

(Updates to afternoon)
By Stephen Culp
NEW YORK, July 23 (Reuters) - A host of strong earnings
boosted U.S. stocks on Tuesday and world stocks edged higher in
anticipation of central bank easing, while sterling fell after
Brexit hardliner Boris Johnson won the leadership of Britain's
Conservative Party, clearing the way for him to become 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.
"When you combine a loosening Fed and better-than-expected
earnings, that should be gas in the tank for stocks," said
Oliver Pursche, chief market strategist at Bruderman Asset
Management in New York.
"The offset to that is the IMF report," Pursche added.
The International Monetary Fund cut its global growth
forecast for this year and next, citing concerns about the
protracted tariff disputes between the United States and its
trading partners and the prospect of Britain exiting the
European Union (Brexit) without a deal. The Dow Jones Industrial Average .DJI rose 74.49 points,
or 0.27%, to 27,246.39, the S&P 500 .SPX gained 9.89 points,
or 0.33%, to 2,994.92 and the Nasdaq Composite .IXIC added
10.83 points, or 0.13%, to 8,214.97.
The European STOXX 600 benchmark rose about 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 0.98% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.28%.
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. But the British pound slid after Johnson, who has promised
to lead Britain out of the European Union with or without a deal
by the end of October, won the Conservative Party leadership and
will replace Theresa May as the country's prime minister.
"At best you'd describe Boris Johnson as an unpredictable
force," said Pursche. "He's not somebody who's going to calm
markets."
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 0.41%, with the euro EUR=
down 0.47% to $1.1155.
The Japanese yen weakened 0.20% versus the greenback at
108.11 per dollar, while sterling GBP= was last trading at
$1.2445, down 0.23% 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 was up 0.2% at $56.33 per barrel and
Brent LCOcv1 was last at $63.23, down 0.05% 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 5/32 in price
to yield 2.0602%, from 2.043% late on Monday.
The 30-year bond US30YT=RR last fell 19/32 in price to
yield 2.5966%, from 2.57% late on Monday.
Gold prices were a bit lower, held in check by a robust
dollar. Spot gold XAU= dropped 0.2% to $1,422.50 an ounce.
Copper CMCU3 lost 0.71% to $5,975.00 a tonne.
Three-month aluminum on the London Metal Exchange CMAL3
rose 0.11% to $1,818.00 a tonne.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
GBP positions https://tmsnrt.rs/32KS6jO
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>