* Wall St, Europe indexes bounce back after Asia falters
* U.S. Treasury prices dip as stocks come back in fashion
* Euro falls as ECB says to go ahead with stimulus withdrawal
* Safe-haven yen eases gains as market panic subsides (Updates to late afternoon, adds commentary)
By Sinéad Carew
NEW YORK, Oct 25 (Reuters) - U.S. stocks followed Europe higher on Thursday as investors ventured into risky bets again with some encouragement from earnings and the dollar rose against the euro after remarks from Europe's Central Bank chief committed to stimulus withdrawal despite market volatility and worries about global growth.
Oil prices regained ground as stocks rebounded and as Saudi Arabia's energy minister signaled major producers may need to intervene in crude markets to support prices. greenback rose against the euro. The ECB's Mario Draghi reaffirmed that its 2.6-trillion euro ($2.97 trillion) asset purchase program will end this year and interest rates could rise after next summer even though the economic outlook has darkened and political turmoil looms in Italy. equity investors were reassured by positive earnings and stronger technology stocks, they also voiced some caution about whether the broader pullback was over.
"The main reason we're up was that yesterday was a big day of selling," said Stephen Massocca, Senior Vice President at Wedbush Securities in San Francisco who also cited strong earnings from companies such as Microsoft Corp MSFT.O and strong advertising revenues from Twitter Inc (NYSE:TWTR) TWTR.N .
The odds are that the sell-off "took enough wind out for us to set sail again," he said but "it doesn't mean we're going to race right back to the September highs."
Google-parent Alphabet GOOGL.O and Amazon.com AMZN.O were among the top boosters of the S&P ahead of their results later. Dow Jones Industrial Average .DJI rose 483.77 points, or 1.97 percent, to 25,067.19, the S&P 500 .SPX gained 63.89 points, or 2.41 percent, to 2,719.99 and the Nasdaq Composite .IXIC added 248.35 points, or 3.49 percent, to 7,356.75.
Stocks extended their gains as the session wore on even after the new Federal Reserve vice chair, Richard Clarida, said he'd support "some further" increase in interest rates as the best way to nurse the current U.S. recovery along while guarding against any jump in inflation. its trading day, the pan-European STOXX 600 .STOXX had darted in and out of positive territory before closing up 0.51 percent while the MSCI's gauge of stocks across the globe .MIWD00000PUS gained 1.06 percent. dollar index .DXY rose 0.27 percent, with the euro EUR= down 0.28 percent to $1.1359.
Draghi said he was confident the European Commission and Rome would come to a compromise over Italy's budget plans, but the euro reversed earlier gains after he said the monetary union remained fragile. dealers were also unwinding Swiss franc CHF= and Japanese yen JPY= safety trades and Italian and Spanish bonds held their ground as Draghi reiterated the European Central Bank's plans to carefully remove its stimulus. Japanese yen weakened 0.30 percent versus the greenback at 112.61 per dollar, while Sterling GBP= was last trading at $1.282, down 0.47 percent on the day.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 1.19-percent lower, while Japan's Nikkei .N225 lost 3.72 percent. were also eyeing mixed U.S. economic data.
New applications for U.S. unemployment aid rose last week, but the number of Americans receiving benefits fell to more than a 45-year low, pointing to tightening labor market conditions. new orders for key U.S.-made capital goods fell for a second straight month in September and the goods trade deficit increased further amid rising imports, suggesting economic growth moderated in the third quarter. 10-year Treasuries US10YT=RR last fell 4/32 in price to yield 3.1393 percent, from 3.124 percent late on Wednesday. crude CLcv1 rose 0.75 percent to $67.32 per barrel and Brent LCOcv1 was last at $76.93, up 1 percent on the day. gold XAU= dropped 0.4 percent to $1,228.31 an ounce due to the strong dollar and the equities rebound. GRAPHIC-Nearly $7 trillion wiped off world stocks
https://tmsnrt.rs/2ONOPwD GRAPHIC-Global assets in 2018
http://tmsnrt.rs/2jvdmXl GRAPHIC-World FX rates in 2018
http://tmsnrt.rs/2egbfVh GRAPHIC-Emerging markets in 2018
http://tmsnrt.rs/2ihRugV GRAPHIC-MSCI All Country World Index Market Cap
http://tmsnrt.rs/2EmTD6j
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