GLOBAL MARKETS-Global stocks rise on US earnings, oil gains

* Global stocks gain after strong earnings, outlooks

* U.S. Treasury prices drop as stocks get earnings boost

* Dollar down across the board on improving risk sentiment

* Oil gains on decline in U.S. gasoline supplies (Updates prices; add graphics links)

By Herbert Lash

NEW YORK, Aug 17 (Reuters) - World equities rose on Wednesday, lifted by strong outlooks and results from U.S. retailers, while crude oil gained on a larger-than-expected decline in U.S. gasoline supplies.

The earnings reports from consumer bellwethers Target Corp (TGT.N) and Staples Inc (SPLS.O) pushed U.S. Treasury prices down, as did fears that inflation may be on the rise after a Labor Department report showed rising producer prices. For details see: [ID:nN1E77G0BN]

European stocks, which had fallen earlier in the session after French President Nicolas Sarkozy and German Chancellor Angela Merkel failed on Tuesday to appease investor concerns about Europe's debt crisis, rebounded when Wall Street opened.

Stocks also gained as investors speculated that the Federal Reserve will again intervene in the U.S. bond market in an attempt to shore up a still-struggling economy. [ID:nN1E77G0DE]

Investors are watching for any indications of further monetary easing, in particular when Fed Chairman Ben Bernanke speaks on Aug. 26 in Jackson Hole, Wyoming. Bernanke hinted a year ago at Jackson Hole another round of quantitative easing was in the works, sparking a stock market rally.

"Part of the stabilization in the equity market is that there is some expectation that there is going to be something coming out of those meetings," said Alan De Rose, head trader of government trading and finance at Oppenheimer & Co in New York.

The benchmark 10-year U.S. Treasury note US10YT=RR was down 2/32 in price to yield 2.23 percent. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

INSTANT VIEW-US producers prices rise [ID:nN1E77G08S]

Graphic - U.S. producer prices rise

r.reuters.com/buh33s

Graphic - U.S. mortgages Applications rose last week

r.reuters.com/ceh33s ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Both Target and Staples posted better-than-expected quarterly earnings, leading Target to forecast a more profitable year than analysts expected and Staples to raise its profit outlook.

Deere & Co (DE.N) and BJ's Wholesale Club Inc BJ.N also posted better-than-expected quarterly profits.

"We've seen some household names put out better earnings numbers this morning, and that's extremely constructive," said Art Hogan, managing director of Lazard Capital Markets in New York.

The Dow Jones industrial average .DJI was up 68.72 points, or 0.60 percent, at 11,474.65. The Standard & Poor's 500 Index .SPX added 9.35 points, or 0.78 percent, at 1,202.11. The Nasdaq Composite Index .IXIC rose 5.89 points, or 0.23 percent, at 2,529.34.

Global stocks, as measured by MSCI's all-country world equity index .MIWD00000PUS, gained 0.8 percent.

In Europe, German government bonds rallied and were likely to remain supported as Franco-German plans for closer fiscal integration in the euro zone did little to soothe concerns that the region's debt crisis will abate any time soon. [ID:nL5E7JH143]

German Bund futures FGBLc1 rose 84 ticks to 133.95.

The U.S. dollar dropped across the board, hurt by steep losses versus the Swiss franc and selling in the midst of improved risk appetite. [ID:nN1E77G0HZ]

The franc jumped sharply after fresh steps by the Swiss National Bank to stem the currency's gains disappointed a market positioned for more radical measures. [ID:nL5E7JH12C]

The euro tumbled more than 2 percent against the franc but was up 0.60 percent at $1.4494 against the dollar EUR=.

The dollar was down against a basket of major currencies, with the U.S. Dollar Index .DXY down 0.53 percent at 73.621.

Brent crude LCOc1 rose 1.7 percent to $111.00 a barrel, while U.S. light sweet crude oil CLc1 advanced 1.81 percent to $88.22 a barrel.

Spot gold prices XAU= rose $2.30 to $1,787.30 an ounce. (Reporting by Gertrude Chavez-Dreyfuss, Karen Brettell and Rodrigo Campos in New York; Jessica Mortimer, Ana Nicolaci da Costa, Alex Lawler and Amanda Cooper in London; Writing by Herbert Lash; Editing by Dan Grebler)