Global stocks rise on reassuring results

By Herbert Lash

NEW YORK (Reuters) - Global stocks rose sharply on Wednesday after reassuring results at such U.S. bellwethers as Intel Corp and JPMorgan, and the euro vaulted to a lifetime peak against the dollar on record euro zone inflation.

Oil fell from record highs near $115 a barrel as a build in U.S. heating oil stocks countered concerns over declines in crude and gasoline inventories.

Surging energy and food prices pushed euro zone inflation to a new high of 3.6 percent in March, boosting the euro on rapidly fading chances of an interest rate cut by the European Central Bank in the near term.

That highlighted a growing interest rate differential with the United States, where consumer prices moved up a bit less than expected and left the Federal Reserve some room to cut rates again to ward off a housing-led slowdown.

The number of U.S. housing projects started in March fell to the lowest in 17 years, according to another report.

Euro zone and U.S. government debt prices fell on the back of corporate results that reassured investors after recent disappointments, especially in the hard-hit banking sector.

"When you see a tech bellwether, a consumer products bellwether and a big financial all clocking in with good numbers, it makes you a bit of a believer," said Edward Bretschger, director of equity sales and trading at Calyon Securities in New York.

The Dow Jones industrial average .DJI was up 191.42 points, or 1.55 percent, at 12,553.89. The Standard & Poor's 500 Index .SPX was up 20.76 points, or 1.56 percent, at 1,355.19. The Nasdaq Composite Index .IXIC was up 53.23 points, or 2.33 percent, at 2,339.27.