News: GLOBAL MARKETS-U.S. stocks hover near record highs, oil falls

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    • Safety trades unwound after Turkey coup bid crushed
    • Turkish lira rebounds but local stocks plummets
    • Oil prices fall but hold above Friday's lows
    • SoftBank deal to buy ARM buoys European stocks

    (Updates market action, changes dateline, previous LONDON)

    U.S. stock prices were higher on Monday, with the Dow Jones Industrial and Standard & Poor's 500 hovering near record highs amid upbeat company earnings, while oil fell as traders brushed off a failed coup in Turkey over the weekend.

    As Turkish authorities sought to retaliate for a faction of armed forces' bid to seize power, traders pared their safe-haven holdings of yen, gold and low-risk government bonds, though they clung to some of their gains seen when the coup attempt broke.

    "The markets are going to be driven by earnings reports, while geopolitical problems take a backseat for now," said Peter Cardillo, chief market economist at First Standard Financial in New York.

    Bank of America BAC.N , the No.2 U.S. bank by assets, and fellow S&P 500 component Hasbro HAS.O posted better than expected profit for the second quarter, mirroring the results of the few companies, including big banks, that reported last week.

    The Dow Jones industrial average .DJI was up 24.72 points, or 0.13 percent, at 18,541.27, the S&P 500 .SPX was 4.77 points, or 0.22 percent, higher at 2,166.51 and the Nasdaq Composite .IXIC was up 27.68 points, or 0.55 percent, at 5,057.27.

    Japan's SoftBank Group's 9984.T $32-billion deal to buy British chip designer ARM Holdings ARM.L briefly lifted European equities to a three-week high.

    The FTSEurofirst 300 .FTEU3 index was down 0.1 percent at 1,334.15.

    The MSCI world equity index .MIWD00000PUS , which tracks shares in 45 nations, rose 0.23 points or 0.06 percent, to 411.45.

    Turkish stock prices .XU100 , however, were down 7.4 percent.

    In the oil market, Brent crude LCOc1 was last down $1.00, or down 2.1 percent, at $46.61 a barrel. U.S. crude CLc1 was last down $0.93, or down 2.02 percent, at $45.02 per barrel.

    In the currency market, the yen was down 0.7 percent against the dollar JPY= and 1 percent versus the euro EURJPY= as safe-haven trades tied to the coup in Turkey were largely reversed.

    The dollar index .DXY was little changed at 96.574. The Turkish lira TRY= recovered after posting its biggest one-day drop against the greenback since Oct. 2008 on Friday as news of the coup attempt broke, according to Reuters data. It was last up 1.4 percent at 2.98 lira.

    Spot gold prices XAU= fell $4.44 or 0.33 percent, to $1,333.01 an ounce.

    Although concerns about Turkey's stability have abated for now, yields on 10-year U.S. and German government debt slipped on expectations the European Central Bank may embark on more stimulus to help the region's sluggish economy.

    The 10-year Treasury yield US10YT=RR was down 1 basis point at 1.58 percent, and the 10-year Bund yield DE10YT=RR down 3 basis points at -0.029 percent. pre ((For Reuters new Live Markets blog on European and UK stock markets see reuter//realtime/verb=Open/url=

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