* Corporate earnings lift U.S., European stocks
* Dollar gains slightly (Adds U.S. market open, changes dateline; previous LONDON)
By Herbert Lash
NEW YORK, July 29 (Reuters) - Global equity markets rose on Wednesday, lifted by strong U.S. and European corporate earnings, although moves were subdued before a policy statement from the U.S. Federal Reserve, which is expected to raise interest rates, perhaps as early as September.
The dollar was slightly higher against major currencies before the U.S. central bank is scheduled to conclude a two-day meeting at 2 p.m. EDT (1800 GMT). ID:nL1N108249
The prevalent view has been that the Fed is ready to end its near-zero interest rate policy by year-end as the world's biggest economy has dug out of the global downturn.
The market is looking at stock-specific earnings and is waiting for Fed Chair Janet Yellen to indicate a rate move will likely be sooner rather than later, so policy makers are not caught off guard and forced to be aggressive, said Ryan Larson, head of U.S. trading at RBC Global Asset Management in Chicago.
"The market at this point should expect nothing less, and if she says that, they should be no more surprised than they were yesterday," Larson said. "That's been well telegraphed, and I think she'll go right down the middle of the road."
With just over half of S&P 500 companies having reported second-quarter results, 73 percent have been above expectations, compared with a 70 percent beat rate over the past four quarters, according to Thomson Reuters data.
Shares of General Dynamics (NYSE:GD) GD.N hit a record high, gaining 4.7 percent, after the company said it saw a rebound in demand for its Gulfstream business jets. The shares led sector-wide rally for major aerospace stocks. ID:nL1N1091JF
The Dow Jones industrial average .DJI was up 112.24 points, or 0.64 percent, at 17,742.51. The Standard & Poor's 500 Index .SPX was up 11.94 points, or 0.57 percent, at 2,105.19. The Nasdaq Composite Index .IXIC was up 13.20 points, or 0.26 percent, at 5,102.41.
MSCI's all-country world stock index .MIWD0000PUS rose 0.63 percent, while the FTSEurofirst index .FTEU3 of leading European shares rose .95 percent.
In Europe, carmaker Peugeot PEUP.PA reported first-half net income for the first time in four years. Oil major Total TOTF.PA posted higher-than-expected second-quarter profits. ID:nP6N0X601U
The dollar rose 0.23 percent at 123.83 yen JPY= , while the euro was down 0.4 percent at $1.1014.
Higher U.S. Treasuries yields also supported the greenback, with the two-year yield US2YT=RR rising to 0.708 percent. The benchmark 10-year U.S. Treasury note US10YT=RR fell 10/32 in price to yield 2.2877 percent US/
Oil prices reversed early losses and rose after weekly data showed an unexpectedly large drawdown in U.S. crude inventories.
Data from the U.S. Energy Information Administration showed crude USOILC=ECI stocks fell by 4.2 million barrels last week, more than twenty times analysts' expectations for an decrease of 184,000 barrels.
Front-month Brent futures LCOc1 rose 60 cents to $53.90 a barrel. U.S. crude for September delivery CLc1 last traded at $49.26, up $1.28 on the day.