* Threats of ECB action keep euro subdued
* Oil prices fall on rising supplies
* U.S. bond prices slip before two-year supply (Adds close of U.S. markets)
By Herbert Lash
NEW YORK (Frankfurt: HX6.F - news) , April 22 (Reuters) - Global equity markets rose onTuesday, lifted by solid U.S. corporate earnings and deal-makingactivity among European drugmakers, while the euro edged abovebreak-even.
On Wall Street, the S&P 500 and the Nasdaq posted a sixthstraight session of gains, led by the healthcare sector. InEurope, an index of top European shares finished up 1.3 percent,the biggest daily advance since early March.
Netflix Inc, the video streaming company, surged7.0 percent to $372.90 a day after it reported quarterly resultsthat showed strong subscriber growth, a sign its shares couldcontinue to rise despite valuation concerns.
One-fifth of the companies in the S&P index have reportedfirst-quarter earnings so far, of which 63 percent beat analystsexpectations. The rate is in line with a 20-year average butdown from the 66 percent average of the past four quarters.
"What was baked into the market, in spite of a market nearan all-time high, was a sloppy earnings season," said MikeSerio, regional chief investment officer for Wells Fargo PrivateBank in Denver.
"We've had some really good beats at this point, we've had acouple of good announcements today, you throw on the M&Aactivity in the drug sector, at least in the short term,everybody looks pretty excited about this market."
Healthcare stocks rose 1 percent, the bestperforming of the 10 major S&P sectors. Allergan Inc (NYSE: AGN - news) jumped 15.2 percent to $163.65 a day after activist investorWilliam Ackman teamed up with Canadian drugmaker ValeantPharmaceuticals International Inc to bid for thecompany.
Valeant gained 7.5 percent to $135.41 in New York trading.
The Dow Jones industrial average rose 65.12 points,or 0.4 percent, to 16,514.37. The S&P 500 gained 7.66points, or 0.41 percent, to 1,879.55, and the Nasdaq Composite added 39.912 points, or 0.97 percent, to 4,161.458.
AstraZeneca (NYSE: AZN - news) jumped 4.7 percent in London after theSunday Times newspaper reported Pfizer (NYSE: PFE - news) approached itsBritish rival with a 60 billion pound ($101 billion) takeoveroffer. Pfizer rose 1.2 percent to $31.23.
GlaxoSmithKline (Other OTC: GLAXF - news) rose 5.2 percent after it agreed tosell its oncology products to Novartis (Xetra: NOT.DE - news) for $14.5billion, while buying the Swiss firm's vaccines, excluding flu.Novartis' shares were up 2.3 percent.
Investors trimmed their positions of U.S. dollars after atwo-week run higher, unmoved by data on U.S. existing home salesfor March that beat expectations but showed a modest declinefrom the prior month.
The euro gave up some of its modest gains, but remainedslightly positive against the greenback and yen.
The euro slipped to a two-week low of $1.3783 at onepoint, before trading 0.09 percent higher at $1.3804.
ECB executive board member Benoit Coeure said on Tuesdaythat there was further margin to reduce the main interest ratebelow 0.25 percent and that the strength of the euro could bekeeping inflation too low.
But until the ECB takes action, traders said the euro wasunlikely to weaken much, thus keeping it tied to a range.
The dollar was up a bit against the yen at 102.62.
U.S. crude futures fell ahead of Energy InformationAdministration data expected to show that U.S. inventories haverisen close to record highs. Brent also fell but was cushionedby continued concerns over the stand-off in Eastern Ukraine.
Brent crude settled down 68 cents at $109.27 abarrel, after reaching a six-week high of $110.36 last week.U.S. crude slipped $2.24 to settle at $102.13 a barrel.
Longer-maturity U.S. Treasuries prices rebounded at the endof the session. Benchmark 10-year Treasuries notes last traded 1/32 higher in price to yield 2.7151 percent.
(Reporting by Herbert Lash; Additional reporting by MariusZaharia in London; Editing by Leslie Adler and Chizu Nomiyama)
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