* Netflix results lift Wall St, deal talk buoys Europe
* Threats of ECB action keeps euro subdued
* Oil prices fall on rising supplies
* U.S. bond prices slip before two-year supply
(Adds oil settlement)
By Herbert Lash
NEW YORK, April 22 Global equity markets rose on
Tuesday, powered by solid U.S. corporate earnings and
deal-making activity among European drugmakers, while the euro
edged above break-even.
On Wall Street, the S&P 500 and the Nasdaq were on track for
a sixth straight session of gains, led by technology shares. In
Europe, an index of top European shares finished up 1.3 percent,
the biggest daily advance since early March.
Netflix Inc, the video streaming company, surged
5.9 percent to $369.10 a day after it reported quarterly results
that showed strong subscriber growth, a sign the company's
shares could continue to rise despite valuation concerns.
One-fifth of the companies in the S&P index have reported
first-quarter earnings so far, of which 63 percent beat analysts
expectations. The rate is in line with a 20-year average but
down from the 66 percent average of the past four quarters.
"The season has been better than many have feared, which is
helping investors feel comfortable with the pace of economic
growth, not just in the first quarter but going forward," said
Joseph Tanious, global market strategist at J.P. Morgan Asset
Management in New York.
Shares of social media companies gained after Credit Suisse
upgraded its recommendation on Facebook Inc to
"outperform." Facebook rose 3.1 percent to $63.12.
The Global X Social Media Index ETF rose 0.9
percent, with Twitter Inc up 0.87 percent and Yelp Inc
up 2.4 percent.
The Dow Jones industrial average rose 99.25 points or
0.6 percent, to 16,548.5. The S&P 500 gained 11.57
points, or 0.62 percent, to 1,883.46 and the Nasdaq Composite
added 46.407 points, or 1.13 percent, to 4,167.953.
MSCI's all-country stock index rose 0.6
percent, while the FTSEurofirst 300 index of top
European shares closed up 1.34 percent at 1,346.57 points.
AstraZeneca jumped 4.7 percent in London after the
Sunday Times newspaper reported Pfizer approached its
British rival with a 60 billion pound ($101 billion) takeover
offer. Pfizer rose 1.2 percent to $31.23.
GlaxoSmithKline rose 5.2 percent after it agreed to
sell its oncology products to Novartis for $14.5
billion, while buying the Swiss firm's vaccines, excluding flu.
Novartis' shares were up 2.3 percent.
Investors trimmed their positions of U.S. dollars after a
two-week run higher, unmoved by data on U.S. existing home sales
for March that beat expectations but showed a modest decline
from the prior month.
The euro gave up some of its modest gains, but remained
slightly positive against the greenback and yen.
The euro slipped to a two-week low of $1.3783 at one
point, before trading 0.09 percent higher at 1.3803.
ECB executive board member Benoit Coeure said on Tuesday
that there was further margin to reduce the main interest rate
below 0.25 percent and that the strength of the euro could be
keeping inflation too low.
But until the ECB takes action, traders said the euro was
unlikely to weaken much, thus keeping it tied to a range.
The dollar was flat against the yen at 102.61.
U.S. crude futures fell ahead of Energy Information
Administration data expected to show that U.S. inventories have
risen close to record-highs. Brent also fell but was cushioned
by continued concerns over the stand-off in Eastern Ukraine.
Brent crude settled down 68 cents at $109.27 a
barrel, after reaching a six-week high of $110.36 last week.
U.S. crude slipped $2.24 to settle at $102.13 a barrel.
U.S. Treasuries prices fell, with benchmark yields at their
highest level in two weeks, in advance of an auction of $32
billion in two-year notes, the first part of this week's $96
billion in coupon-bearing supply.
Benchmark 10-year Treasuries notes last traded
1/32 lower in price to yield 2.7242 percent,
(Reporting by Herbert Lash; Additional reporting by Marius
Zaharia in London; Editing by Leslie Adler and Chizu Nomiyama)