(Updates prices throughout; adds European open and U.S. stock
futures)
* European stocks at highest in over a year
* ECB set for Mario Draghi's final policy meeting
* 2018 Tesla shares jump 21%, Microsoft gains, too
* Investors ignore earnings miss from Caterpiller, Boeing
By Marc Jones
LONDON, Oct 24 (Reuters) - Europe's traders were sending
European Central Bank chief Mario Draghi off in style on
Thursday, raising the region's stocks to their highest in more
than a year and nudging the euro towards its best month since
January 2018.
Update earnings from Microsoft and Mercedes maker Daimler,
along with a ceasefire in northern Syria, lifted the mood. Trade
and Brexit uncertainties and some below-par German data
prevented even bigger gains. .EU
The list of landmarks was still impressive. The pan-European
Stoxx 600 .STOXX rose 0.3% to its highest since May 2018.
Germany's DAX .DAX wasn't far behind and the euro was at
$1.1140 EUR= , consolidating its 2.1% October advance.
Gains in Asia had included a one-year high for Tokyo's
Nikkei and saw MSCI All World index .MIWD00000PUS , which
tracks nearly 50 countries, reach its highest since late July.
"Draghi is in a situation where bond yields are higher and
the collapse we saw over the summer is reversing, the euro has
steadied itself and everything is fine, except for the PMIs of
course," said Societe Generale's Kit Juckes. "And he's handing
over an empty monetary policy toolkit."
Euro zone bond yields were steady before Draghi's send-off.
The Swedish crown rose 0.7% after the country's central bank
said it was still planning to raise interest rates in December.
Its gains pulled the Norwegian crown higher as well, despite a
relatively dovish message from the Norges Bank as it left rates
unchanged.
Turkey's central bank was expected to slash its 16.5% rates
by another 100 basis points, after U.S. President Donald Trump
lifted sanctions on Turkey following a ceasefire in northern
Syria. DREAMS
On Wall Street earlier, the Dow .DJI and the Nasdaq
.IXIC added 0.2% each and the S&P 500 .SPX gained 0.3%
Tesla TSLA.O shares jumped 21% in after-hours
trading after the company reported an unexpected third-quarter
profit.
Microsoft MSFT.O posted forecast-beating profit and
revenue numbers after the closing bell, although the outlook was
darkened by slower-than-expected take-up of its Azure cloud
services.
Shares of Boeing Co BA.N and Caterpillar Inc CAT.N ended
about 1% higher each despite big earnings misses. Alarming headlines since the first quarter of 2018 suggested
poor Caterpillar earnings seemed to mean a recession was around
the corner, RBC Capital Markets' chief economist Tom Porcelli
said, but has never managed to arrive.
"We have been down this road before with CAT," Porcelli said
in a note titled "Still Waiting For Recession." "If you keep
saying a recession is here, it is a mathematical certainty that
at some point you will be right. Maybe try again after CAT's
next quarterly earnings report."
So far, results from about 125 of the S&P 500 companies are
out with analysts expecting earnings to have declined 2.9%
year-over-year, according to IBES data from Refinitiv.
BREXIT BATTLE
Sterling GBP= paused at $1.2914 after rising 0.3% on
Wednesday. After more than three years, Britain appears closer
than ever to resolving its Brexit conundrum but still has
hurdles to clear.
EU member states on Wednesday delayed a decision on whether
to grant Britain a three-month Brexit extension. Prime Minister
Boris Johnson said if the deadline is deferred to the end of
January, he would call an election.
"The Brexit battle looks like it will drag on," economists
at ANZ wrote in a note. "The UK government will not meet its
current timetable of leaving the EU on 31 October, and an
extension appears likely. In the meantime, Brexit uncertainty
will keep weighing on UK business investment and activity."
The euro EUR=D3 was flat at $1.1132. The Japanese yen
JPY= was 0.1% higher at 108.6 per dollar and the Australian
dollar AUD=D3 was weaker at $0.6842.
The dollar index .DXY was lower at 97.452 against a basket
of six major currencies, heading for its worst month since
January 2018.
In commodity markets, U.S. crude CLcv1 fell 38 cents to
$55.59 a barrel. Brent LCOcv1 slipped 22 cents to $60.95.
Gold XAU= was treading water at $1,491.51 an ounce.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
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(Editing by Larry King)