* Stocks gains on tame US CPI, improved consumer sentiment
* Euro falls against US dollar after Moody's cuts Ireland
* U.S. Treasuries extend gains on benign inflation data
* Oil rises on China growth, better US consumer sentiment (Updates prices)
By Herbert Lash
NEW YORK, April 15 (Reuters) - Sovereign debt fears pushed the euro lower on Friday after Moody's cut Ireland's rating to just above junk, while global stocks rose as encouraging U.S. economic reports overshadowed disappointing company earnings.
The Moody's downgrade kept the euro zone's debt problems in focus although the euro was underpinned by expectations of more rate rises by the European Central Bank and the likelihood that the Federal Reserve will keep U.S. rates on hold. For details see: [ID:nN15420019]
"The interest rate differential argument has clearly supported the euro the last few weeks," said Greg Salvaggio, senior vice president for capital markets at Tempus Consulting in Washington.
Oil prices gained, with North Sea Brent crude climbing to $124 a barrel at one point, after U.S. reports showed tame inflation and improved consumer sentiment this month. [ID:nL3E7FF0HH]
The reports, along with data that showed industrial capacity use jumped in March to its highest level since August 2008 and better-than-expected manufacturing activity in New York state eased worries about slower growth. [ID:nN15215603] [ID:nDYE7EA02G]
U.S. stocks rose in a broad advance and European stocks ended slightly higher but posted their first weekly loss in a month on worries over the euro zone debt crisis. [ID:nN15244744] [ID:nLDE73E1L1]
"I'm surprised the market is holding up so well, given Google and Bank of America. But everyone is happy with the consumer price number," said Randall Warren, chief investment officer of Warren Financial Service in Exton, Pennsylvania.
"People were afraid that inflation could derail the bull market, and this data puts that story on hold."
The Dow Jones industrial average <.DJI> was up 53.16 points, or 0.43 percent, at 12,338.31. The Standard & Poor's 500 Index <.SPX> was up 4.48 points, or 0.34 percent, at 1,319.00. The Nasdaq Composite Index <.IXIC> was up 0.67 points, or 0.02 percent, at 2,760.89.
Poor corporate results tempered gains. Bank of America
The FTSEurofirst 300 <.FTEU3> index of top European shares closed 0.3 percent higher at 1,131.72 points. For the week, posted a 1.5 percent loss.
Global stocks as measured by MSCI's all-country world index <.MIWD00000PUS> rose 0.1 percent, pulled higher by Wall Street.
Oil rose, lifted by U.S. consumer sentiment and Chinese economic growth data that outweighed concerns about the strain of rising fuel costs on the economy. [ID:nL3E7FF0HH]
U.S. crude futures
U.S. Treasuries extended gains on the government report showing underlying inflation pressures were subdued in March. [ID:nN15306631]
The benchmark 10-year U.S. Treasury note
Analysts and traders are turning increasingly bullish on the near term outlook for U.S. Treasuries, saying slowing growth and benign inflation may help further price gains. [ID:nN15235704]
Copper closed almost flat as the dollar pared gains, but investors worried high inflation in China would lead to monetary tightening and erode demand. [ID:nLDE73E0MY]
"The pace of Chinese growth points to further monetary tightening there, which could weigh on Chinese fuel demand in the future," said Carsten Fritsch, an analyst at Commerzbank. (Reporting by Ryan Vlastelica, Nick Olivari and Ellen Freilich in New York; Christopher Johnson, Rebekah Curtis and Kirsten Donovan in London; Blaise Robinson in Paris; Writing by Herbert Lash; Editing by Chizu Nomiyama)