GOOG Alphabet Inc

By Riva Gold 
   -- Alphabet shares fall after earnings 
 
   -- European bank stocks follow bond yields higher 
 
   -- Dollar steady as Fed meeting begins 

Global stocks climbed Tuesday as a measure of German business sentiment touched a record high and investors parsed a flurry of earnings reports.

The Stoxx Europe 600 was up 0.7% midday, with banks, insurance companies and miners leading much of the advance.

Data on Tuesday showed the German Ifo business climate index beat analysts' expectations in July, with the institute describing the mood among companies as "euphoric."

The euro climbed 0.1% to $1.1654, trading not far off a two-year high. It is up nearly 11% against the dollar for 2017.

"A strong economy is causing a strong euro," said Peter Elston, chief investment officer at Seneca Investment Managers. While it won't help exporters, many European companies are likely to benefit from falling unemployment and stronger growth in the region, he added.

A modest rise in government bond yields supported financial shares, as such moves tend to boost lending income. German 10-year bond yields climbed to 0.522% from 0.497% Monday, while 10-year Treasury yields rose to 2.276% from 2.253%. Yields move inversely to prices.

In the U.S., futures pointed to an opening gain of 0.2% for the S&P 500 after a quiet session on Monday.

Shares of Google-parent Alphabet Inc. fell by around 2.5% in premarket trading , offsetting the upbeat tone from Europe, after the company reported second-quarter earnings late Monday. The stock had gained around 26% so far this year and expectations were high ahead of the results.

Shares of Michael Kors Holdings climbed 3.1% after the luxury-fashion company reached a deal to buy Jimmy Choo PLC for GBP896 million ($1.17 billion). Shares of the luxury shoemaker were up around 17% in London.

Some analysts said trading was muted as the Federal Reserve was set to begin its two-day policy meeting. Economists expect no change in interest rates at this juncture, though some have speculated the central bank could announce the start date of its balance sheet runoff.

"I think there's a relatively low ceiling on where [policy] can go unless inflation kicks in," said John Maxwell, fund manager at Ivy Investments. "We don't have signs of inflation that need to be tamed."

In commodities, rises in Chinese iron-ore futures and base-metals prices boosted shares of global mining companies. Copper futures hit their highest levels since March amid optimism about Chinese demand, and possible supply challenges, and were last up 2.4% at $6,181 a ton.

Brent crude oil was up 1.3% at $49.42 a barrel, following pledges from Saudi Arabia and Nigeria to curb exports and output, respectively.

Earlier, Australia's S&P/ASX 200 added 0.7%, outperforming stock markets in the region, following a weak session on Monday. Major banks and mining companies advanced, while shares there drew some support from the climb in oil prices.

Indexes in Japan, Hong Kong and Taiwan were barely changed from Monday's closing levels, while South Korea's Kospi fell 0.5% from a record high.

Razak Musah Baba

,

Nina Adam

and Ese Erheriene contributed to this article.

Write to Riva Gold at riva.gold@wsj.com

(END) Dow Jones Newswires

July 25, 2017 07:57 ET (11:57 GMT)

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