GLOBAL MARKETS-Dow Jones recovers to 10,000; US dollar slides

* US stock index Dow Jones industrials hits 10,000

* JPMorgan earning results beat forecasts, boost stocks

* US dollar hits 14-month low vs euro, basket

* Gold hits record, oil at year's highs (Recasts, updates with closing prices)

By Manuela Badawy

NEW YORK, Oct 14 (Reuters) - Strong quarterly profits from major bank JPMorgan Chase pushed the benchmark U.S. stock index Dow Jones industrial back above the 10,000 level on optimism of an economic recovery is underway, while the U.S. dollar slide to a 14-month low against major currencies.

The Dow Jones industrial average <.DJI> ended over the psychologically important 10,000-level for the first time since October 2008.

"Dow 10,000 may be largely psychological but with tremendous levels of cash on the sidelines this may still be a call to action for investors," said Lawrence Glazer, Managing Partner at Mayflower Advisors in Boston.

World stocks mostly ended higher also, with the MSCI all-country world stock index <.MIWD00000PUS> up 1.9 percent to a new 12-month high. The index is up 28 percent this year, and more than 70 percent since hitting a six-year low in March.

Meanwhile, with U.S. short term interest rates among the lowest in the developed world, investors continued to move into higher yielding assets in other currencies, sending the U.S. dollar to its lowest level in 14 months against a basket of currencies.

For a graphic showing rising stocks and the fall of the dollar, click here: http://graphics.thomsonreuters.com/109/US_DOWUSD1009.gif

Commodity prices were supported by the weaker dollar and gold prices hit a record high before ending little changed, while crude oil prices which rose to a 2009 high above $75 a barrel .

The second largest U.S. bank, JPMorgan , reported quarterly profit that easily beat forecasts, spurring optimism that the banking system was recovering, enabling credit markets to fuel economic growth. [ID:nN13183184] Late Tuesday leading technology company, Intel Corp also reported earnings that beat expectations.

SAFE-HAVEN RETREAT

The U.S. Federal Reserve released minutes from its September meeting that said some policymakers thought increasing its purchases of mortgage-backed securities would help the economy but did not consider inflation an imminent threat.[ID:nN14255674]

This suggested benchmark U.S. interest rates will remain low well into 2010, dulling the dollar's appeal, especially if other central banks start lifting interest rates as growth picks up.

The U.S. dollar was down against a basket of six other currencies, with the dollar index <.DXY> down 0.66 percent at 75.475, hitting its lowest since August 2008.

The euro was up 0.43 percent at $1.4919 after rising to its highest level since August 2008. Against the Japanese yen, the dollar was down 0.31 percent at 89.42 yen from a previous session close of 89.700.

U.S. government bond prices fell as stocks rose and government data showing improvement in retail sales, diminishing the attractiveness of safe-haven U.S. debt.

The benchmark 10-year U.S. Treasury note fell 22/32 its yield rising to 3.4192 percent.

The U.S. government report showed total sales at retailers fell by a less-than-expected 1.5 percent in September. [ID:nN14236340]

European shares also rose to their highest in a year at 1,017.75, up 2.2 percent on the day, while MSCI's emerging market equities index reached its highest since mid-August 2008 above 968.

But Thailand's benchmark stock index slipped more than four percent to two-week lows as domestic financial markets tumbled on concerns over the health of the country's 81-year-old king, traders said.

(Additional reporting by Steven C. Johnson, Edward Krudy and John Parry in New York, Tamawa Desai, Jan Harvey in London)