* 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 mid morning U.S. trade, adds commentary, changes byline, previous dateline LONDON)
By Sinéad Carew
NEW YORK, Oct 25 (Reuters) - U.S. stocks followed Europe higher on Thursday after investors ventured into risky bets again with encouragement from some strong earnings and the dollar rose against the euro after remarks from Europe's Central Bank chief fueled fears about the monetary union.
Oil prices stabilized after an early sell-off as investors returned their focus to the fundamentals of supply and demand as equity markets regained some lost ground. greenback rose against the euro after 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 sought bargains and some were reassured by positive earnings and stronger technology stocks, they also voiced caution.
"There's a sense of nervousness and caution because a lot of people were caught off guard by the drop yesterday," Scott Brown, chief economist at Raymond James in St. Petersburg, Florida said.
"At this point it's all about sentiment. People are looking for things to settle down and I think we need to see more concrete evidence of that."
Wall Street was helped by reassuring results from Microsoft Corp MSFT.O and strong advertising revenues from Twitter Inc (NYSE:TWTR) TWTR.N . 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 375.12 points, or 1.53 percent, to 24,958.54, the S&P 500 .SPX gained 47.06 points, or 1.77 percent, to 2,703.16 and the Nasdaq Composite .IXIC added 196.21 points, or 2.76 percent, to 7,304.61.
The pan-European STOXX 600 .STOXX was darting in and out of positive territory. It rose 0.51 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.70 percent.
Draghi said he was confident the European Commission and Rome would come to a compromise over Rome's budget plans, but the euro reversed earlier gains after he said the monetary union remained fragile. dollar index .DXY rose 0.18 percent, with the euro EUR= down 0.15 percent to $1.1374.
Currency 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 0.28 percent versus the greenback at 112.61 per dollar, while Sterling GBP= was last trading at $1.2823, down 0.44 percent on the day.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 1.22 percent lower, while Japan's Nikkei .N225 lost 3.72 percent. in China, the Shanghai SE Composite index .SSEC managed to eke out a tiny gain after dropping as much as 2.8 percent at one point. 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 3.1375 percent, from 3.124 percent late on Wednesday. crude CLcv1 rose 1.03 percent to $67.51 per barrel and Brent LCOcv1 was last at $76.82, up 0.85 percent on the day. 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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