GLOBAL MARKETS-Stocks rise, dollar slumps as Fed meets

* World stocks near 2-yr high on positive economic data

* US stocks up on expected Republican congressional gains

* Dollar falls broadly, oil and bond prices higher
(Updates with U.S. markets’ open, changes byline, dateline,
previously LONDON)

By Walker Simon

NEW YORK, Nov 2 (BestGrowthStock) – World stocks neared a 2-year
high on Tuesday while the dollar fell broadly as a second
straight day of stronger-than-expected economic news stoked the
appetite for riskier assets.

U.S. stocks (Read more about the stock market today. ) were also lifted by investors’ anticipation of
strong Republican gains in Congress halfway through Democratic
U.S. President Barack Obama’s term.

In campaigns Republicans accused Democrats of stifling
business with regulations and failing to extend tax cuts, while
Democrats countered that Republicans blocked economic recovery

“I think it is people trying to get in front of what they
think will be the election results (Republican gains),” said
Rick Meckler, president of investment firm LibertyView Capital
Management in New York.

The dollar fell against major currencies, with the U.S.
Dollar Index (.DXY: ) down 0.65 percent. A fall in the greenback
makes dollar-denominated commodities cheaper for non-U.S.

Euro zone manufacturing picked up its pace last month, a
business survey showed one day after better-than-expected U.S.
and Chinese factory data increased optimism about the global
economy and revived risk appetite. For details, see

“From a global perspective, the growth outlook looks solid
and that’s feeding some appetite for risk,” Omer Esiner, chief
market analyst at Commonwealth Foreign Exchange in Washington,

The euro traded above $1.40, buoyed by the European
economic data, but traders doubted the euro would be able to
stay above this level. They cited uncertainty over the scope of
the Federal Reserve’s expected decision to stimulate U.S.
growth via quantitative easing.

A Fed announcement is expected on Wednesday at the end of a
two-day policy meeting.

Markets have priced in Fed asset-buying of $100 billion a
month for five months in an attempt to bring market rates lower
and repair weak growth, which has kept unemployment high.

The size of the program is key. A larger-than-expected
program of asset-buying — which amounts to printing money —
would weigh on the dollar and boost commodity prices, while
smaller buying would hit investor risk appetite.

The MSCI world equity index (.MIWD00000PUS: ) rose 0.74
percent to 319.13, a whisker shy of the two year-high of 319.84
hit on Oct. 25.

On Wall Street, the Dow Jones industrial average (.DJI: ) was
up 69.81 points, or 0.63 percent, at 11,194.43. The Standard &
Poor’s 500 Index (.SPX: ) was up 6.90 points, or 0.58 percent,
at 1,191.28. The Nasdaq Composite Index (.IXIC: ) was up 16.73
points, or 0.67 percent, at 2,521.57.

The FTSEurofirst 300 index (.FTEU3: ) rose 0.45 percent to

The euro (EUR=: ) was up 1.03 percent at $1.4032. Against the
Japanese yen, the dollar (JPY=: ) was up 0.26 percent at 80.69.

U.S. light sweet crude oil (CLc1: ) rose 1.05 percent, to
$83.82 per barrel, and spot gold prices (XAU=: ) rose $4.55 to
$1,355.30 an ounce.

Prices of U.S. Treasuries rose on talk about the size of
expected bond-buying program by the Fed. The benchmark 10-year
U.S. Treasury note (US10YT=RR: ) was up 10/32, with the yield at
2.592 percent.

The 30-year U.S. Treasury bond (US30YT=RR: ) was up 30/32,
with the yield at 3.951 percent.

Japan’s broad-based Topix index fell to its lowest in 19 months on Tuesday as the yen’s strength against the dollar
hurt shares of exporters. The Topix (.TOPX: ) ended down 0.02
percent at 803.12, while the benchmark Nikkei (.N225: ) added 0.1
percent to 9,159.98.

On Monday, a Reuters/Ipsos poll found Republicans are
poised to take control of the House, gaining at least 50 seats,
but they are unlikely to win a majority in the Senate.
(Additional reporting by Angela Moon and Gertrude
Chavez-Dreyfuss and Natsuko Waki in London; Editing by Kenneth

GLOBAL MARKETS-Stocks rise, dollar slumps as Fed meets