GLOBAL MARKETS-Global stocks surge on results; euro hits high

(Adds close of U.S. markets)

By Herbert Lash

NEW YORK, April 16 (Reuters) - Global stocks jumped on Wednesday on reassuring results at such U.S. blue chips as Intel and JPMorgan, while the euro soared to a lifetime peak against the dollar on record euro zone inflation.

Oil surged to a record high over $115 a barrel as the dollar crashed and U.S. crude and gasoline inventories fell sharply in anticipation of America's summer driving season.

Surging energy and food prices pushed euro zone inflation to a new high of 3.6 percent in March, which lifted the euro on fading chances that the European Central Bank will cut interest rates in the near term.

The rise in European inflation highlighted an interest rate differential with the United States, where consumer prices rose a bit less than expected and left the Federal Reserve some room to cut rates again to combat a housing-led slowdown.

In the latest indicator of the extent of the U.S. downturn, the Commerce Department reported that home building skidded to a 17-year low last month. Housing starts dropped 11.9 percent in March to an annual rate of 947,000 units, the slowest pace since March 1991.

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.

The three major U.S. stock indices rose more than 2 percent.

"The fact that companies that are viewed as being higher quality, like JPMorgan and Intel, did not drop a negative surprise on the market is causing investors to cheer today," said Eric Kuby, chief investment officer at North Star Investment Management Corp in Chicago.

The Dow Jones industrial average .DJI rose 256.80 points, or 2.08 percent, to close at 12,619.27. The Standard & Poor's 500 Index .SPX gained 30.28 points, or 2.27 percent, to finish at 1,364.71. The Nasdaq Composite Index .IXIC added 64.07 points, or 2.80 percent, to end at 2,350.11.

Intel (INTC.O) affirmed its profit margin target for 2008 late on Tuesday, reassuring investors concerned about falling memory chip prices and the impact of a weak U.S. economy.

JPMorgan Chase & Co's (JPM.N) earnings fell 50 percent but the third-largest U.S. bank was able to skirt the massive losses that have crippled many rivals.

Intel and JPMorgan each rose about 6 percent, but Coca-Cola Co (KO.N) barely gained because favorable exchange rates sparked much of its positive surprise and muted Wall Street's enthusiasm.

"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.

European shares ended sharply higher, driven by gains in banks after JPMorgan's results soothed investor concerns and soaring commodity prices lifted miners and food oils.