* Stocks also gain as euro zone bank worries fade
* Dollar trades mostly flat ahead of Fed chief's testimony
* Oil near three-month lows as supply fears ease
(Adds close of U.S. markets)
By Herbert Lash
NEW YORK, July 14 The dollar traded near
break-even and global equity markets rose on Monday, lifted by
Citigroup's earnings and as investors put aside concerns about
euro zone banks and took heart in a fresh round of merger and
Citigroup Inc reported stronger-than-expected adjusted
quarterly profit as its fixed-income business performed ahead of
forecasts. The bank also announced a $7 billion settlement over
its sale of flawed mortgage securities.
The settlement with the U.S. Justice Department was more
than twice what many analysts had expected, but less than the
$12 billion sought by the government.
Citigroup shares rose 3.0 percent to $48.42 in the
second-biggest boost to the benchmark S&P 500 index, after Apple
Europe's biggest markets gained more than half a percent
, helped by deal-making in the pharmaceutical sector and
easing anxiety about the fallout from problems at Portugal's
biggest listed bank.
"There's a bit of a snap-back from the Portugal hiccup,"
said Philip Orlando, chief equity market strategist at Federated
Investors in New York. "And investors are starting to rethink
what kind of earnings season we're going to have," he said.
MSCI's all-country world equity index rose
0.61 percent, while the FTSEurofirst 300 index of top
European shares closed up 0.84 percent at 1,363.49.
The Dow Jones industrial average closed up 111.61
points, or 0.66 percent, to 17,055.42. The S&P 500 gained
9.53 points, or 0.48 percent, to 1,977.1 and the Nasdaq
Composite added 24.929 points, or 0.56 percent, to
The dollar drifted around the unchanged mark against most
major currencies but edged higher against the Japanese yen as
investors awaited congressional testimony on Tuesday by Federal
Reserve Chair Janet Yellen on U.S. monetary policy.
The dollar was up 0.18 percent against the yen at 101.54
, while the euro rose 0.07 percent to $1.3617. The
dollar index traded near break-even at 80.184.
U.S. Treasuries prices slipped on expectations Yellen could
take a less accommodative stance on interest rates in her
congressional testimony on Tuesday.
Benchmark 10-year U.S. Treasury notes were last
down 7/32 in price to yield 2.5468 percent.
Brent crude oil steadied around $107 a barrel, close to its
lowest in three months after weeks of sharp falls on signs of
improving supply from key producers and weak demand in some
Brent crude settled 32 cents higher at $106.98. U.S.
crude futures rose 8 cents to settle at $100.91 a barrel.
(Reporting by Herbert Lash; Additional reporting by Patrick
Graham in London; Editing by Meredith Mazzilli, Dan Grebler,
Chizu Nomiyama and Diane Craft)