World shares rise on good earnings news

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Equities on Wall Street rose, as better-than-expected corporate earnings such as from Ford propelled the Standard & Poor's 500 Index to the highest level in nearly three years.

In early afternoon trading on Wall Street, the Dow Jones Industrial Average advanced 0.96 per cent, the Standard & Poor's 500 Index rose 0.92 per cent and the Nasdaq Composite Index climbed 0.86 per cent.

Investors also welcomed results from 3M Co and UPS, which both lifted their full-year profit expectations as well.

"The very positive outlooks from today means things look very bright going forward," Peter Andersen, portfolio manager of the Boston-based Congress Asset Management, told Reuters.

"I was frankly delighted with Ford's results, and the market is taking some of its cue from the strength there," said Andersen, who helps manage US$7 billion and owns Ford.

US consumer confidence strengthened in April, according to a private-sector report, easing concern that the climb in oil prices has dampened shoppers' spirits.

Investors are eyeing the US Federal Reserve's policy meeting on Wednesday. The Fed is expected to indicate it is in no hurry to raise interest rates, while Chairman Ben Bernanke will deliver the first regularly scheduled post-decision news briefing in the bank's 97-year history.

"[The Fed will] focus on flexibility," Constance Hunter, chief economist at Aladdin Capital Holdings in Stamford, Connecticut, told Reuters. "There will probably not be a QE3, but they will probably not withdraw QE2 either. They are going to leave their balance sheet at this level for some time."

The US dollar slid to the lowest level in 16 months against the euro amid anticipation the Fed's monetary policy will remain accommodative compared with that of the European Central Bank.

The greenback fell 0.26 per cent against a basket of major currencies.

In Europe, the Stoxx 600 Index advanced 0.3 per cent.

Silver was headed for its largest one-day fall in six weeks. Spot silver dropped as much as 4.9 per cent to US$44.63 an ounce. The expiry of US silver options added to the intensity of the fall.

"We are seeing investors taking profits on the metal after this incredible run-up which was fuelled largely by speculators," TD Ameritrade chief derivatives strategist Joe Kinahan told Reuters.

"We often see this case in commodities where speculators will come in a bit late to the party looking for the trend to continue to be their friend," he said. "But the problem here is that silver was nearing all-time highs this week."

Gold slid from yesterday's US$1,518.10 an ounce record.

Oil was mixed as the chief of Saudi Arabia's state-run firm Aramco expressed concern about the impact of high oil prices on the global economy, limiting gains from the weak US dollar.

Brent crude for June edged 5 cents higher to $123.71 a barrel by 1.07pm EDT.

US crude for June slipped 52 cents to US$111.76.